Mumbai: The government has rejected a proposal by state-run BSNL, the country''s largest telecom company, to offer services in Mumbai and Delhi metros, saying guidelines do not permit it.

As per the existing guidelines for issue of unified access services licence, BSNL can''t be granted the licence for Mumbai and Delhi, minister of state for telecom and IT Shakeel Ahmad said in a written reply in Lok Sabha.

MTNL operates in these two metros. BSNL had applied for grant UASL licence for operating fixed and mobile service in Delhi and Mumbai.

BSNL leads with a 28.06 per cent market share in the overall telecom services market, followed by Bharti Airtel at 20.06 per cent and Reliance at 14.43 per cent. Vodafone Essar, which has only cellular mobile services, has 13.94 per cent marketshare as on July, 2007. Tatas have 8.03 per cent marketshare and Idea Cellular, an AV Birla group company, has 7.31 per cent, he said.