State-run BSNL’s aspiration of entering the lucrative Delhi and Mumbai
circles has not found favour with the Department of Telecom that feels
competition between PSUs in same service areas cannot add much value
to shareholder or customers.
After its first plea was rejected in 2004, it applied again in 2006
after MTNL got the National Long Distance licence. BSNL’s contention
was that since MTNL has entered its domain of domestic long distance
service, it should also be allowed to operate in Delhi and Mumbai,
where its sister concern is active.