BSNL to cut tariffs to counter rivals

State-owned telecom major Bharat Sanchar Nigam Ltd (BSNL) is planning to slash its tariffs in some regions to counter competition from rivals.

"We are reviewing the situation and come out with a new tariff structure at the right time," a BSNL source said. The restructuring of cellular tariffs will be based purely on the competition BSNL faces from its rivals, he added.

The revised tariffs may vary from state to state and there may be some tariff revisions on an all-India basis also. There may not be any changes in the tariff structure in basic telephony as they had been cut recently.

Tariffs offered by BSNL are the lowest among all service providers in the country. It provides 30-second and 15-second pulse rates across various plans in its cellular service.

The long distance charges of Cell One, the cellular subsidiary of BSNL, are among the lowest offered by cellular operators.

If the tariffs are further slashed then it will create a price war and initiate other operators to follow suit.

BSNL has also adopted aggressive marketing strategy to promote its services.

It has tied up with web portals such as Yahoo.com, bazee.com etc. and radio channels such as Vividh Bharti and Radio Mirchi for advertising. It is also the principal sponsor of Rath Yatra in E-TV's Oriya channel.