Following directives from Telecom Ministry to synergise their operations, state-run MTNL on Wednesday said it has initiated process with BSNL to streamline their business, including telecommunications, enterprise and customer care to cut costs.

Both the firms are reeling under huge financial losses and the Government has directed them to synergise their resources in order to cut costs and provide Pan-India services to their subscribers.

"We want to give experience of Pan-India network to subscribers, especially corporate clients. Big subscribers want resources all over the country," MTNL CMD Kuldeep Singh said.

MTNL provides telecom services in the Mumbai and New Delhi, while BSNL offers similar services in rest of the country's 20 service areas.

Asking whether this could lead to merger of both the organisations, Singh said,"The government will decide on merger".

Recently, the Board for Reconstruction of Public Sector Enterprises (BRPSE) had recommended that BSNL should merge with its counterpart MTNL -- a move that will help turn around the loss-making telecom giant.

"We want to give single window services such as one billing, one redressal mechanism to both state-run firms subscribers," Singh added.

The companies will also look at common brands for some services as well, that could result in cost savings. However, there is not time frame set for both the companies in this regard.

Last week, the telecom major MTNL had reported a yearly net loss of Rs 2,826 crore, up 8.27 per cent from Rs 2,610.9 crore in the same period previous year.

Total income rose to Rs 3,841.2 crore as against Rs 3,781 during the period under consideration.

BSNL, once the country's flagship telecom company, posted a net loss of Rs 1,823 crore on revenue of Rs 32,046 crore in 2009-2010. The company had net profit of over Rs 10,000 crore in 2005-06.