MAHANAGAR TELEPHONE NIGAM LIMITED (MTNL): COMPANY PROFILE

Type: A publicly-listed state-owned enterprise Traded as: NSE: MTNL BSE: 500108 NYSE: MTE Industry: Telecommunications Founded: 1986 Headquarters: New Delhi, India Key people: A.K.Garg (Chairman & MD) Products: Fixed-line and mobile telephony, broadband and fixed-line internet services, digital television Revenue: $788.7 million (2010) $-567.5 million (2010) $6.988 billion (2010) $1.351 billion (2010)

Net income: Total assets: Total equity:

Employees: 45,000 (2010)

Website: www.mtnldelhi.in Www.mtnlmumbai.in

VISION

Become a total solution provider company and to provide world class telecom services at affordable prices. Become a global telecom company and to find a place in the Fortune 500 companies. Become the largest provider of private networks and leased lines. Venture into other areas in India and abroad on the strength of our core competency.

MISSION To remain market leader in providing world class Telecom and IT related services at affordable prices and to become a global player.

CORPORATE OBJECTIVES

To expand customer base and services. To provide latest technology and services to the customers, at affordable prices. To achieve the highest level of customer satisfaction and delight. To diversify in other areas for providing telecom services at national and international levels. To provide convergence of Telecom, Information Technology and related services. To improve productivity by training and redeployment of man-power. To work for social benefits.

BOARD OF DIRECTORS Chairman & Managing Director Director (Finance) Director (Human Resources) Director (Part-Time) Ashok Kumar Garg Anita Soni S P Pachauri Venkitaraman S Iyer Adit Jain Rajan Saxena Vijay Aggarwal T S Narayanasami

Nominee (Govt)

Malay Shrivastava Nirmala Pillai

Company Secretary Director (Technical)

S R Sayal Kuldip Singh

BACKGROUND

Mahanagar Telephone Nigam Limited (MTNL) was set up on 1st April, 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, introduce new services and to raise revenue for telecom development needs of India's key metros, Delhi, the political capital and Mumbai, the business capital of India. In the past 23 years, the company has taken rapid strides to emerge as India's leading and one of Asia's largest telecom operating companies. Besides having a strong financial base, MTNL has achieved a customer base of 8.06 million as on 31st March 2009. The company has also been in the forefront of technology induction by converting 100% of its telephone exchange network into the state-of-the-art digital mode. The Govt. Of India currently holds 56.25% stake in the company.

Mahanagar Telephone Nigam Limited (MTNL) is a state-owned telecommunications service provider in the metro cities of Mumbai and New Delhi in India. The company was a monopoly until 1992, when the telecom sector was opened to other service providers. "Transparency makes us different" is the motto of the company. In recent years, MTNL has been losing revenue and market share heavily due to immense competition in the Indian telecom sector.

The name Mahanagar Telephone Nigam Limited (MTNL) has been derived from; 'Maha' = big or great 'Nagar' = city or town 'Mahanagar' = metropolis or megacity 'Nigam' = venture or enterprise.

LISTING OF MAHANAGAR TELEPHONE NIGAM LTD.:

The Listing Page of Mahanagar Telephone Nigam Ltd. presents the Incorporation Date, Public Issue Date, Book Closure dates, Face Value, Key Listing information, Indices it is a part of, and the Exchanges where the company is listed. Key Dates Incorporation Date 28/02/1986 Public Issue Date Year Ending Month March AGM Month September Book Closure Start Date 27/09/2011 Book Closure End Date 29/09/2011 Listing Information Face Value 10.0 Market Lot Of Equity Shares 1 BSE Code 500108 BSE Group B The compnay forms a part of following indices BSE 500 Index (500 Cos) BSE Dollex Index (200 Cos) BSE Mid-Cap Index BSE Public Sector Undertaking Index BSE TECk Index S&P CNX 500 Equity Index (500 Cos) Listed On Bangalore Stock Exchange Ltd. Calcutta Stock Exchange Association Ltd. Cochin Stock Exchange Ltd. Delhi Stock Exchange Assoc. Ltd. Hyderabad Stock Exchange Ltd Inter-connected Stock Exchange of India Jaipur Stock Exchange Ltd Ludhiana Stock Exchange Assoc. Ltd. Madras Stock Exchange Ltd., National Stock Exchange of India Ltd. Over The Counter Exchange Of India Ltd. The Stock Exchange, Mumbai Uttar Pradesh Exchange Assoc Ltd.

GROWTH OF MTNL
MTNL as a company, over the last twenty three years, grew rapidly by modernizing the network through induction of State-of-the-art technologies and adopting a customer friendly approach. 1986 114 0.88 0.75 0.75 10,593 264 11 Nil 2009 558 10.72 8.06 3.69 0.10 4.18 1.43 0.70 0.21 39,303 243 100%

1.No of exchanges 2.Equipped capacity (Millions) 3.Subscriber base (Millions) i) Basic Wireline & CDMA Fixed (Millions) ii) CDMA-Mobile (Millions) iii) GSM Cellular (Millions) 4.Internet (Millions) 5.Broadband (Millions) 6.Public Call Offices (Local and Long Distance) (Millions) 7.No of stations on Long Distance Network 8.No of countries connected overseas on ISD 9.Digitalization of exchange network

United Telecom Limited (UTL) MTNL has formed a Joint Venture company in Nepal by the name of United Telecom Ltd. (UTL) in collaboration with Telecom Consultants India Limited (TCIL), Videsh Sanchar Nigam Limited (VSNL) and NVPL (Nepal Ventures Pvt. Ltd., a Nepalese Company) The Company is operational since 10th October, 2001 for providing WLL based basic services in Nepal. In Nepal against the switching capacity of 50K, 21K telephone connections are working.

Mahanagar Telephone Mauritius Limited (MTML) MTNL has set up its 100% subsidiary .Mahanagar Telephone Mauritius Limited. (MTML) in Mauritius, for providing basic, mobile and international long distance

services as 2nd. operator in Mauritius. Necessary licenses have been obtained in January 2004. MTML has already started its ILD & CDMA based basic services in Mauritius. In Mauritius against the switching capacity of 50K, 8K telephone connections are working. Looking for new horizons Incorporated on 17th Feb., 2000, Millennium Telecom Limited is a wholly owned subsidiary of MTNL that has been formed to do practically any type of Telecom Business with a focus on value added services. It intends to be a Universal Telecom solution provider to meet the needs of the customers, both Telecom and its Applications, on a one stop basis through Service Level Agreements using Multi Service, Flexible, customized access supported by a strong billing system. It intends to roll out a router-based packetised telecom network and create facilities like Application Development Centre, Internet Data Centre, STP facilities and payment gateway. Presently, it has a category ?A? ISP licence and is in the process of application development and rolling out the services. The company also started its operation in Himachal Pradesh in association with HPSEDC from 25 th Feb, 2002.Web Enabled Tendering has also been started from 14.1.2002 for information on various tenders by logging on to nividasewa.com. The company has signed MOUs for co-operation with 1.West Bengal Electronics Limited. 2.Karnataka State Electronics Limited. The company is in the process of signing further MOUs with 1.Bihar State Electronics Corporation 2.Kerala State Electronics Corporation

MTNL-STPI IT Services Limited MTNL-STPI IT Services Ltd. is a 50:50 Joint Venture between Software Technology Parks of India (STPI) and Mahanagar Telephone Nigam Limited, (MTNL). The JV formed in 2006 combines the STPI.s rich experience as an ISP and MTNL.s track record of being India.s leading telecom operating company to offer niche portal services to the Indian community. The JV was formed to realize one of the 10-point agenda of MoC&IT, which are of extreme importance to India for bringing about an all round economic development. The JV aims to provide exclusive data center services, messaging services, business application services to the identified sectors of economic

activity and thereby also popularizing the .in domain in the networked community across the world.

Millenium Telecom Limited (MTL) MTNL has restructured Millenium Telecom Ltd. (MTL) as a Joint Venture company of MTNL and BSNL with 50% and 50% equity participation respectively. The company will now be entering into new business stream of international long distance operations and will be executing a project of submarine cable system, both east and west from India.

HISTORY OF MTNL

1986 - On 28th February Mahanagar Telephone Nigam Ltd. Was incorporated as a Public Limited Company under the Companies Act, 1956. The company has been set up to take over the management, control and operation of Delhi Telephone District (Excluding public telegraph service) and Mumbai Telephone District of the Department of Telecommunications and to plan, establish, develop, provide, operate and maintain all types of telecommunication services including Telephone, telex, wireless, data communication, telematic and other like forms of communication. - One of the important objectives of the company is to raise the necessary finance to meet its own developmental needs and also that of the telecommunications board of the Department of Telecommunication. - The Main objectives and aims of Nigam are as follows: (1) To upgrade the quality of telecom services (2) To expand telecom (3) To raise necessary financial resources (4) To provide new telecommunication services, particularly needed by the business community and public administration such as Cellular Mobile Radio Telephone, Radio Paging, Fascimile Videotex, Teletex, Electronic Mail etc. (5) To invest in Human Resource Development (6) To organise and dovetail the training programmes. - During November, the Mahanagar Telephone Nigam Ltd. Offered 15,00,000-14% and 10% secured redeemable non-convertible bonds of Rs 1,000 each for public subscription to partly meet the fund requirements of the capital expenditure programmes of the

MTNL and DOT envisaged for the year 1986-87. - Additional 7,50,000 bonds were issued to retain over subscription. 15,88,460-14% secured redeemable bonds were privately placed with the financial institutions and banks. - All shares issued to President of India and of which 59,99,984 shares were issued without payment in cash.

1987 - 1,12,133-14% and 19,26,327-10% bonds of Rs 1000 each were allotted in February/March. The 14.0% and 10.0% bonds are redeemable after the expiry of 7 years and 10 years respectively from the date of allotment. 1995 - The entire junction network in the system was fibre based on a step to provide self healing machanisms to be built in the System through induction of SDH technology.

1996 - The Company floated on private placement basis 11th `A' part and 12th Series of bonds aggregating Rs 359.26 crores for the developmental programmes of the department of telecommunications.

1997 - The Company took various steps to provide a host of value added services like datacom, inet, DIDPABX, Voice Mail, Radio Paging and ISDN. - In addition to phone plus facilities like dynamic locking, call waiting/call transfer, hot line etc. Were extended to valued customers. Apart from this IVRS (Interactive Voice Response System) like local assistance changed number information, and falut booking system ensuring round the clock service, a CD-ROM version of the telephone directory and an on-line directory enquiry through PC was introduced during the year. - The Company undertook to provide, wireless in the local loop in Mumbai and Delhi, GSM Mobile Telephone in Delhi and Mumbai, B.CDMA pilot project, Induction of Smart Payphone and introduction of DLC optical fibre borne system.

- Payment of bills was made hassel free with the introduction of electronic clearing system and customer service management system for on-line payment and adjustment of telephone bills. - The Company issued 7,00,000 No. Of equity shares representing 3,50,000 gdrs (1 GDR = 2 shares) at a price of US $ 11.958 per GDR. 1998 - As on 31st March, the waiting list of the MTNL has 1047 in Delhi and Nil in Mumbai due to its sustained efforts and timely implementation of various projects. - Mahanagar Telephone Nigam Ltd is considering a proposal to reduce the security, a Wireless in Local Loop (will) subscriber has to pay to Rs 15,000 from Rs 25,000. - MTNL has proposed that a will subscriber's bank can stand guarantee for this security, effectively ensuring that there is no real outflow from the subscriber's pockets. - The Mahanagar Telephone Nigam Ltd (MTNL) board has approved a proposal for setting up a joint venture company with the Telecom Consultants India Ltd (TCIL) for operating basic and cellular services. - The Company is setting up a network in Kuwait. The project was awarded to TCIL in June 1997. In Comoros, the company is using C-dot exchanges for the telecom network. - The Mahanagar Telephone Nigam Ltd (MTNL) is developing a software to protect customers from telephone tapping and reading by external sources. - Mahanagar Telephone Nigam Ltd (MTNL) launched the country's first toll-free service in Delhi. - The company will be advertising to select an international joint venture (JV) partner for its cellular phone service; MTNL will have a 51 per cent equity stake in the new company. - MTNL will set up an integrated commercial accounting system with help from Tata Consultancy, Services. - The state-owned Mahanagar Telephone Nigam Ltd (MTNL) is all set to give a run to private cellular operators for their money by launching a "low-tariff" mobile telephone service to cater to the salaried middle-class and students.

- Within a few weeks of listing, the MTNL (Mahanagar Telephone Nigam Ltd) GDR issue was voted as one of the top 10 Best International Equity Issue in 1997 in a poll conducted by Euroweek's International Equity Review, the respected international business publication. - In the polls, MTNL secured the awards of the 10th best international equity issue of 1997; fourth best Asian equity issue of 1997; and second best Indian equity issue of 1997. - Mahanagar Telephone Nigam Ltd., is undertaking a restructuring plan to ward off competition and streamline costs. - Mahanagar Telephone Nigam Ltd (MTNL) is holding parleys with banks, fis and mutual funds for making a private placement of bonds worth Rs.450 crore.

1999 - Mahanagar Telephone Nigam (MTNL) has proposed a cash-and-stock deal to the Department of Telecommunications (dot). - Mahanagar Telephone Nigam Ltd (MTNL) has proposed a joint venture with Telecom Consultants India Ltd (TCIL) to become the second basic telecom services provider in West Bengal and Jammu and Kashmir. - The Department of Telecommunications (dot) and Mahanagar Telephone Nigam Ltd (MTNL) have shot down the Delhi and Mumbai cellular operators' proposal for an outof-court-settlement of the litigation of MTNL's entry into cellular services. - Mahanagar Telephone Nigam Ltd (MTNL) on Tuesday entered into direct competition with another state owned public sector unit Videsh Sanchar Nigam Ltd (VSNL) for Internet services by offering a 15 per cent lower tariff. - International telecommunications provider Videsh Sanchar Nigam Limited (VSNL) will enter the national long distance telephony segment when it is opened up for competition in 2000. - Mahanagar Nigam Telephone Ltd (MTNL) on Wednesday released the new telephone director called Phone Book 1999 after a gap of four years. - The MTNL Board has proposed a stock option price of around Rs. 85 per cent share to the department of telecommunications (dot) as against the market price of around Rs. 85 per share to the department of telecommunications (dot) as against the market price

of around Rs. 170 before the recent political upheaval. - State-owned Mahanagar Telephone Nigam Ltd is expanding the wireless in local loop (WLL) network, both in Mumbai and Delhi up to 50,000 and 10,000 subscribers respectively. In Delhi, they are expanding the network to 10,000 from the existing 1,000 subscribers. In Mumbai the network would be expanded to 50,000 subscriber. - Mahanagar Telephone Nigam Ltd (MTNL) has proposed that the government should dovetail its disinvestment programme of a $100 million Global Depository Receipt (GDR) issue with the company's plan to become the first Indian firm to be listed on the New York Stock Exchange (NYSE) within the next three months. 2000 - Mahanagar Telephone Nigam Ltd (MTNL) tied up with mastercard International to pioneer the acceptance of credit cards for payment of telephone bills. - The Company will do the soft launch of its GSM-based monbile services in Delhi and Mumbai. - The Company is likely to be listed on New York Stock Exchange next month with the public sector telecom giant getting clearance from the bourse. - The Company has proposed increase in the pulse rate of local call for the internet usage to five minutes from three minutes to make internet usage affordable. - The Company will launch its cellular service in Mumbai from August 15. - The Company has awarded the Rs 32 crore contract for Fixed Wireless Terminals for its CDMA network in Delhi. - The Company and American Express travel related services entered into alliance for india's first co-branded telecom credit card MTNL American Express credit card. - The company will mull a tie-up with portals rediff.com and satyamonline.com at a meeting. - The Company has setting up both basic and cellular services in Nepal. - Telecom services in the national capital of Mumbai were partially affected due to one day token strike by non-executive employees of the company demanding revision of pay scales, perks and allowances. - The Employees of the Company in New Delhi went on a one-day strike on 4th June

demanding revision of pay scales and perks. The staff threatened to go on an indefinite strike from July 11. - The Proposed strike of the Company staff unions has been deferred to 21st July. - The state owned Mahanagar Telephone Nigam Ltd. will set up a submarine cable landing station. - The company has to explore possibility of entering a joint venture with another state owned company Videsh Sanchar Nigam for just opened Long Distance telephony. - Narendra Sharma has been appointed as the new chairman and managing director of the company. - The company has opened two additional customer service centres at Chembur in Mumbai. - The Company will expand its "common man" mobile telephone network by 50,000 new lines in the current financial year. - Mahanagar Telephone Nigam Limited to launch its cellular phone service in Mumbai in January next with a subscriber capacity of 1,00,000 lines. - Mahanagar Telephone Nigam Ltd. Has transferred its Internet Service Provider Category-A licence as well as Internet business to its subsidiary, Millennium Telecom. 2001 - MTNL is to develop a dedicated division to spearhead its cellular operations in Delhi and Mumbai. - Mahanagar Telephone Nigam Limited (MTNL) will introduce a cash card for its cellular subscribers within two months of starting its cellular Operations on Jan. 31. - The Company Chairman Narinder Sharma has bagged the international "Millienium Man of the Year" award, instiutted by the international award committee of Wisitex Foundation. - Dolphin, the much-awaited cellular service of MTNL, was launched in Delhi on 6th Feb. - The Company proposes to provide additional net switching capacity of 3.30 lakh lines and to deploy 50,000 lines of CDMA-based WLL technology during the year 2001-02.

- The Company and Videsh Sanchar Nigam Limited have both signed memoranda of understanding with the Department of Telecommunications outlining their performance agenda for the coming financial year. - The Company has tied up with Billjunction.com to provide online bill presenting and payment facility to its customers. - The Company will have a roaming facility in its cellular service, Dolphin, by the end of this month - The Company has tied up with worldtel to offer basic telecom services in Bangaladesh as part of the corporation's proposed move to diversify into overseas operations. - Mahanagar Telephone Nigam Limited (MTNL) has roped in ICRA to chart out a strategy to leverage the human resources of the telecom company - The Delhi High Court has upheld the appointment of Narinder Sharma as chairmancum-managing director of MTNL, saying there was no merit in a writ petition challenging it. - Dolphin, the cellular service promoted by State-owned telecom operator MTNL, seems to be catching on.In October, Dolphin registered 13,000 new subscribers in Mumbai, increasing its base to 33,000. Around 30 per cent of these new connections have defected to Dolphin from incumbent cellular operators, Orange or BPL, according to MTNL officials. - IDBI Bank has forged an alliance with MTNL in Delhi to help the account holders of the bank to pay their phone bills through atms and Internet.

2002 -Announces its launch of Wireless in Local Loop (WLL) service in Mumbai -Launches its pre-paid cellular card "Trump" with tariffs 50 per cent lower than that of the private players in Delhi and Mumbai -Govt. Pemits MTNL, BSNL to compete in basic services -Sets up a new software venture called comsoft for developing communications software, as a part of its strategy to offer value-added communications software in ecommerce, e-governance and intelligent networking

-IDBI Bank signs mou with MTNL for bill payment -Announces unlimited cell calls for Rs 1900 -MTNL stock price records nine-year-low of Rs 95 -Announces new codes for MTNL consumers in Delhi -MTNL stops sales of its pre-paid card Trump

2003 -Misses WLL-M expansion deadline in Delhi -Partners with railtel Corporation of India Ltd. To offer telecom bandwidth vide optical fibre cable (OFC) along its track network -Announces free incoming calls -Formulates VRS for employees -Department of Telecommunications (dot) signs Memorandum of Understanding (mous) for 2003-04 with Mahanagar Telephone Nigam Ltd (MTNL) -Slashes number of free calls -Forms Joint Venture with VSNL and Telecommunications Consultants India Ltd (TCIL) to provide Basic & WLL telephone services in Nepal -Trai rejects MTNL's new WLL tariffs -Cuts down cellular tariffs to take on private sector competition -Awards WLL-M handset contract to Kyocera of Japan -Reduces tariff rates by 50% on CDMA services -Shelves global long distance plan -Approves VRS for its employees

-Gets licence for providing telephone service and ILD services in Mauritius -Joins hands with Nokia, Samsung for WLL handsets -Launches new tariff plan where the monthly rental will be Rs 100 and the call charges will be Rs. 1.90 per minute -Launched a new scheme offering a fixed line telephone connection for Rs 100 per month, on which the customer can access free incoming calls. For outgoing calls, the customers will have to use Virtual Credit Cards (VCC). Thus, the offer introduces a hybrid post-paid cum prepaid arrangement for a fixed line phone. -Shri Narinder Sharma - ceased to be CMD wef October 31, 2003 on retirement from service on attaining the age of Superannuation. 2. Shri R S P Sinha - Director (F) has been entrusted the officiating charge of the post of CMD for a period of 3 months wef November1, 2003. 3. Shri I C Srivastava - ceased to be the Director wef October 8, 2003 due to death 4. Shri P C Rawal - ceased to be the Director wef October 29, 2003 5. Dr J S Sarma - appointed as Govt. Director in place of P C Rawal wef October 29, 2003 6. Smt Monika Arora - tendered her resignation wef November 11, 2003 and ceased to be the director from the said date. -MTNL has come out of its "negative trap" with its fixed-line subscribers outgrowing surrenders, even as it launched a new scheme, 'Plan 160', for basic telephony subscribers. -MTNL has informed that Shri AK Girotra and Shri RL Dubey, Executive Director Delhi and Mumbai respectively have been appointed as ex-officio directors on the Board of MTNL wef December 19, 2003 -MTNL unveils 'Economy Plan' for WLL services

2004 -MTNL launches new schemes for ISDN subscribers -MTNL unveils SMS facilities on its landlines for its customers -MTNL bags licence to offer telecom services in Mauritius, Kenya - MTNL and BSNL have entered into a strategic alliance, under which the two publicsector telecom companies will jointly offer their voice and data services

-MTNL Ltd. Has informed that Sh. A. K. Girotra, and Sh. R.L. Dubey, Executive Director, Delhi and Mumbai respectively have been appointed as ex-officio directors on the Board of MTNL w.e.f. December 19, 2003. -Mahanagar Telephone Nigam Ltd (MTNL) on January 09, 2004, announced a special tariff plan for basic service users with Rs 160 monthly rental aiming at low end users. Under this special plan, there would be no free calls as available under other tariff packages. -ITI queries on MTNL deal with Huawei -MTNL bags award for excellence in cost reduction -MTNL awards GSM line contract for Motorola -Mahanagar Telephone Nigam has launched new leased line services, with both 'full' and 'compressed' bandwidth circuits, for port speeds ranging from 64 kpbs to two mbps -MTNL join hands with BSNL to target corporate clients -MTNL unveils value added services (VAS) for landline customers in Mumbai

2005 - Consumers will get access to high-speed Internet services from Jan 14, onwards for as low Rs 500 a month, with Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd launching its broadband services across the country. - Mahanagar Telephone Nigam Ltd's latest voluntary retirement scheme, which closed on January 31, 2005, has somewhat come a cropper with only around 2,000 employees, out of its total staff of around 58,000, applying for it. -MTNL rolls out Rs 1,000 cr tender for 3G services -Red Hat partners with MTNL's CETTM centre

2006 -NLD licence for MTNL

-MTNL teams up with Aksh Opticfibre for IPTV -MTNL & Software Technology Parks signs JV agreement -MTNL set to launch 3-in-1 services 2007 - Mahanagar Telephone Nigam Ltd (MTNL) has appointed Shri. S P Pachauri as Director (H R) on the Board of MTNL w.e.f. December 06, 2007. -MTNL to tie up with Novatium for Net access device -MTNL all set to buy Sri Lankan Suntel -MTNL gets Rs 1,461 crore I-T refund 2008 -Mumbai: Mahanagar Telephone Nigam Ltd has joined hands with Contakt Tech Solutions India for Express alert, a new value added service for MTNL subscribers - MTNL ha launched the next generation 3G technology-based telecom services in Delhi. The service was inaugurated by Prime Minister Manmohan Singh by receiving a video call from Telecom Minister A Raja, who was also present at the function. - Mahanagar Telephone Nigam Ltd has joined hands with Contakt Tech Solutions India for Express alert, a new value added service for MTNL subscribers. MTNL's customers will get astrology, news, stock, etc alerts by subscribing to these services. 2009 -MTNL to launch 3G Services in Mumbai

2010 - Mahanagar Telephone Nigam Ltd (MTNL) has informed BSE that Shri R. S. P. Sinha, Chairman & Managing Director (CMD), MTNL has relinquished the charge of the CMD and Shri Kuldip Singh, Director(technical), MTNL has been given the additional charge

of the post of Chairman & Managing Director (CMD), MTNL with effect from January 15, 2010.