Mumbai:

According to senior company officials, MTNL is expecting to get all necessary approvals within a month. Also there is a freeze on recruitment at the non-executive level and retraining of staff is been undertaken to meet new demands in the changed environment.

The cash-rich telecom provider will be able to easily bear VRS-related expenses. MTNL has a strong balance sheet with zero debt and has robust cash reserves of over Rs 1,820 crore. In addition, it has dues from Bharat Sanchar Nigam Ltd (BSNL) for bonds and interest. This strong balance sheet can support capital intensive expansion plans.

MTNL has more than 95 per cent of basic subscribers in Delhi and Mumbai. It is also trying get into broadband services of consumer video and data transfer. The company''s current strategy is to retain its existing wireline subscribers and begin capturing the global system for mobile communication (GSM) and wireless in local loop (WLL) market with enhanced marketing accompanied with the most affordable rates.

MTNL has begun providing a chain of value-added services which will help retain customer interest in the company, according to analysts. MTNL expects significant gains from the new interconnection regime. MTNL will be paying/receiving termination charges to/from fixed wireline and WLL networks, the net impact of which will be in MTNL''s favour.

On the domestic calls front, significant gains are expected from new termination fees. On the international long-distance front, lower origination fees are likely to be compensated by higher termination fees because of access deficit charge (ADC). The reduction in free calls will also make a positive impact on the gross revenue.

The company is working on several value-creating initiatives that involve identifying high-usage subscribers and strengthening relationship with them. It is also seeking to enhance customer service and customer care.