Loss-making Indian state-controlled operator MTNL has approached the government seeking an allocation of 4G spectrum across two bands, in return for equity in the company.
MTNL has written to the Telecom Department seeking spectrum in the 1800-MHz and 2100-MHz bands, arguing that a 4G presence is a must to survive in the mobile market, the Hindu Business Linereported.
The operator is seeking spectrum in both of its operating circles of Delhi and Mumbai, and hopes to be able to launch 4G services in the current financial year ending in March 2019.
MTNL has requested that its license payment for the spectrum, which it estimates at 65 billion rupees ($973.3 million) be taken by the government in the form of equity shares, to ensure MTNL is not burdened with additional debt.
MTNL is currently 56% owned by the Indian government and 19% owned by Life Insurance Corporation, with the remainder held by the public.
The operator is meanwhile already straddled with a hefty 170 billion rupees in debt, and is currently considering a revival plan to return the operator to profitability. This would include asset monetization, pursuing additional revenue schemes, a voluntary retirement scheme for employees and other measures.