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MTNL and BSNL to set up JV

Finance , October 15, 2006

MTNL and BSNL have finalised the structure and other issues involved in the setting up of their 50:50 joint venture, to be named Millennium Telecom Company. The company will oversee the construction and operations of the PSUs' undersea cable business. The shareholder agreement is expected to be finalised shortly. As per the deal between the two PSUs, MTNL will only act as an infrastructure provider and not as an international long distance service provider. Moreover, in case of divestment of equity, the first right of refusal of equity would be given to the other partner. The companies also need to sign an undertaking to use MTNL's infrastructure for a minimum period of 20 years.

 
 

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