MTNL jumps on report India urges state governments to use company's services

** Shares of India's Mahanagar Telecom Nigam Ltd (MTNL) NSE:MTNL climb 4% to 51.44 rupees

** Department of Telecommunications (DoT), part of India's federal communications ministry, has asked state governments to use services of state-owned MTNL and unlisted Bharat Sanchar Nigam Ltd (BSNL), citing data security needs, Economic Times reported

** If implemented, it could cost private telecom and internet service providers (ISPs) thousands of crores in potential annual revenue, ET report added, citing industry insiders

** Shares of private telcos Bharti Airtel NSE:AIRTELPP.E1 and Vodafone Idea NSE:IDEA down 0.3% and 1% respectively; Reliance NSE:RELIANCE1!, parent of Jio, down 0.5%

** MTNL and BSNL did not immediately respond to Reuters' request for comment on the report

** Trading volumes of MTNL ~14 mln shares vs 30-day avg. of 8.2 mln

** YTD stock up 2.4%