BSNL cuts STD, ILD rates by 25%

Poll panel to examine decision.

State-owned telecom service provider Bharat Sanchar Nigam Ltd (BSNL) today slashed domestic and international long-distance call tariffs by up to 25 per cent while increasing the pulse rates for domestic long-distance calls from 15 seconds to 20 seconds. It also cut domestic leased line charges by 60 per cent.

From April 10, domestic long-distance calls from fixed-line phones will cost Rs 3.60 a minute instead of Rs 4.80 at present. Tariffs have been reduced for subscribers opting for alternate packages as well with those under the 'BSNL Super Package' getting 33 per cent lower call charges.

Calls to the United States and Canada will now cost Rs 7.20 a minute instead of Rs 9.60. Similarly, tariffs for calls to Australia, New Zealand, African and Gulf countries have been cut by 25 per cent to Rs 18 a minute.

Tariffs have been reduced by only 20 per cent for calls to South East Asian countries like Singapore, Thailand, Malaysia, Indonesia and Hong Kong to Rs 9.60 a minute from Rs 12. The lowest reduction has been in the case of calls to Saarc countries where charges have been cut 15 per cent to Rs 18.

"The reduction in tariffs would result in a loss of Rs 300-350 crore. But we hope it will be compensated through increased traffic," BSNL Chairman and Managing Director VP Sinha said.

BSNL's rival Touchtel did not comment on the possibility of an immediate tariff reduction. "BSNL has only matched our tariffs," a Touchtel spokesperson said. Tata Tele is expected to decide on a tariff reduction in about a week.

According to BSNL, subscribers opting for the 'BSNL Super Package' will be required to pay only Rs 2.40 a minute for all calls made beyond 200 kms instead of Rs 3.60 at present. The new effective rate for those under the 'Economy' and 'Super' packages is Rs 3 and Rs 2.73 a minute, respectively.

While international call rates for BSNL fixed and mobile phone subscribers have been lowered for most markets, the tariffs for Europe and the UK would remain unchanged.

The ISD rate reduction has been made possible as VSNL has agreed to match the lowest settlement charges of Rs 1.69 per minute to the US and the UK, from Rs 2.20 quoted earlier.

Tariffs for non-commercial leased line connections have been reduced for all circuits of 2 mbps and above. The new rates will be applicable from today and subscribers who have already paid for 2004-05 will be entitled to a refund. Following the tariff cut, a 2 mbps connection will now cost Rs 8.8 lakh a year instead of Rs 22 lakh earlier, Sinha said.

Targeting the lower middle income group, BSNL also launched a Pilgrimage Calling Card with denomination of Rs 100 and Rs 200 with a 30-day validity.

Poll panel to examine decision

Shortly after the BSNL announced, the Election Commission on Thursday said it has to be examined if the measure was motivated by the government.

"It has to be examined whether the decision was prompted by commercial interest or motivated by the government," Chief Election Commissioner T S Krishna Murthy told reporters in Srinagar.