The Hindu Business Line : BSNL long distance call tariffs slashed

New Delhi, June 9 In a move that will benefit over 70 million telephone users across the country, State-owned Bharat Sanchar Nigam Ltd has reduced STD rates for its fixed line and cellular subscribers by up to 50 per cent.

Once the new rates come into effect, from June 11 onwards, BSNL’s 35 million fixed line subscribers will be able to make STD calls within the same circle (equivalent of a State) at 60 paise a minute compared to Rs 1.20 at present. This means a subscriber in Chennai will be able to make a call anywhere in Tamil Nadu for 60 paise a minute.

Tariffs for inter-circle STD calls, irrespective of the distance, have also been slashed by 50 per cent. For example, a BSNL subscriber in Bangalore need to pay Rs 1.20 a minute for an STD call to Delhi compared to Rs 2.40 at present.

BSNL’s tariff cut comes after private operators including Bharti Airtel and Vodafone announced steep reduction in STD rates for their cellular subscribers last month. While Airtel offered STD calls at Rs 1.50 a minute, Vodafone took the tariff war forward by dropping it to Rs 1.30 a minute. BSNL has now taken on the private operators by announcing higher tariff reduction for both fixed line and cellular users.

BSNL’s cellular subscribers will be able to make STD calls at Rs 1.20 a minute if they are connecting to another BSNL user and at Rs 1.40 a minute if they call a private operator’s mobile user. The company has also revised its roaming rates to compete with the private operators.

The company expects growth in volumes to compensate for the likely revenue loss in the long term. More importantly, it is hoping to arrest the slide in its market share.