PSU MTNL reported loss of Rs.1,573 crore for the quarterly period-ended March 31, 2010 compared to net loss of Rs.73 crore posted during corresponding quarter last year.

The company attributed the loss to provisions for retirement benefits on revised pay, including arrears and decrease of qualifying service for pension from 33 to 20 years. The wage revisions of employees amounted to estimated arrears of Rs 740 crore and Rs.1,754 crore on account of actuarial valuation for retirement benefits.

Revenues from services declined to Rs 848 crore from Rs 1,068 crore. Other income was at Rs.275 crore. MTNL has earned other income of Rs 771 crore during this quarter on account of income-tax refunds.

During the year ended March 31, 607,777 GSM mobile phone customers and 120,330 broadband customers were added. MTNL's 3G subscribers totaled 3.48 lakh at the end of the quarter.