MTNL is planning a capital expenditure of a little over Rs 17 billion in 2009-10 on network expansion, broadband and new initiatives such as fibre-to-the-home for faster delivery of its interactive services. The company aims to add 100,000 new subscribers –­ including 3G users –­ in Delhi and Mumbai in the current fiscal year.

MTNL, which had been looking to acquire the Sri Lankan telecom firm Suntel, has put those plans on the back burner due to a number of reasons including lack of clarity on Suntel's legal liabilities.