New Delhi, Dec 3 (IANS): State-owned telecom companies Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) have incurred losses respectively of Rs.3,785 crore and Rs.1,567 crore till September.

The losses were mainly due to decline in revenue and increase in expenditure, Communications and IT Minister Ravi Shankar Prasad said in a written reply to the Lok Sabha Wednesday.

"At present, there is no proposal for divestment in MTNL and BSNL. The government is in the process of revival and revitalisation of BSNL and MTNL through various short term, medium term and long term measures," he said.

"The long-term measures, including merger of BSNL and MTNL, would attempt to position these PSUs to emerge as market leaders in the converged telecommunication market."

For an in-depth study on the implications of merger of the two PSUs, four groups have been constituted to study issues of human resources integration, system integration, corporate integration and financial integrations.