More than three months after the international long-distance (ILD) sector was opened up for private players, ISD rates have come down by 40 per cent. The tariff cut was triggered by Bharti Telesonics, which today announced the commercial launch of its India One ILD services, at a peak time tariff of Rs 24 per minute.
Bharti's move prompted the Tata-controlled Videsh Sanchar Nigam Ltd (VSNL) to match Bharti's rates. VSNL used to charge Rs 40 per minute for a call to the US. The move will result in a revenue loss of over Rs 2,500 crore per annum for VSNL.
Following the tariff cuts by the two ILD operators, Mahanagar Telephone Nigam Ltd (MTNL) immediately announced plans to pass on the benefits to its customers in Delhi and Mumbai. Narendra Sharma, MTNL chairman and managing director, said:
