MTNL gets NLD licence, STD rates may fall

MTNL has received the national long distance (NLD) licence from the government. A development that has the potential to start a fresh bout of cuts in STD rates starting with Delhi and Mumbai, two of the most lucrative telecom markets in the country.

The licence could save MTNL upto Rs 400 crore when it begins carrying its own traffic, following the launch of its STD service.

"We have received the NLD licence and are preparing the cost structure for our STD service between Delhi and Mumbai... no decision has been taken yet on how to carry the traffic in the rest of India... we are discussing with BSNL on getting a competitive rate (carriage charge) and are looking at other options where we can get competitive rates," Anita Soni, director (finance), MTNL, told PTI.

Asked whether MTNL is negotiating with BSNL for a lower carriage charge from the current 65 paise a minute, Soni said "We want a competitive rate."