Mahanagar Telephone Nigam Limited (MTNL) announced that it has signed a memorandum of understanding (MoU) with Bharat Sanchar Nigam Limited (BSNL) to provide pan-India telecom services on August 31.

In a filing to the exchanges on September 1, MTNL said that the MoU with BSNL will pave the way for synergy of operations between the two public sector companies in the country.

The MoU will also provide a broad framework for the implementation of decisions taken by the Cabinet in its meeting held on July 27, the release added.

Reacting to the news, MTNL shares closed the day at Rs 12.20, up 12 percent from the previous day's close.