Bsnl Expects 25% Growth In Std Traffic

The state-owned Bharat Sanchar Nigam Ltd (BSNL) is expecting a growth of around 25 per cent in STD traffic following its roughly 60 per cent cut in rates that went into effect on Monday.

"Going by today's response in major markets, there are indication that telecom traffic will grow by around 25 per cent. The substantial growth will nullify the reduction of around 60 per cent in STD rates. However, we will be able to put an exact figure only after a week's time," a top BSNL official said.

Telecom analysts said that the drastic fall in STD rates was welcomed by telephone users, both households and corporate customers, across the country.

A large chunk of the growth will come from markets like Delhi and Mumbai. At present, Mumbai accounts for more than a 10 per cent share of the STD market. Households in Kerala, Gujarat and Punjab will see a substantial increase in traffic thanks to the fall in tariffs.

However, there was some confusion among users in Mumbai, since Mahanagar Telephone Nigam (MTNL) and Hughes Tele.com, the basic telecom operators, did not make any official announcement on the rate cut available to their users. BSNL has no presence in Mumbai and Delhi, while MTNL is the sole state-run operator in these two metros.

Contacted by Business Standard, MTNL officials said the new tariffs are applicable to its customers in Mumbai and Delhi, and that MTNL would not make any special announcement on the new STD rates. "We will pass the benefit to our landline and cellular users," MTNL officials added.

Prakash Bajpai, president and CEO of Hughes Tele.com, said the cut in long distance tariffs will benefit customers, operators and the overall economy and will lead to higher telecom usage. "Corresponding to the the decline in long distance rates, we expect the regulator to announce higher cost-based tariffs for line rentals and local calls," he added.

Though overall telecom traffic is likely to shoot up in the immediate future, some corporates reported mixed. Several corporates, which have tightened the usage of STD calls due to the industrial slowdown in the country, may not relax the guidelines. A top executive at a multinational firm said: "As economic conditions are still uncertain, we will take a wait and watch approach regarding our spending on telecommunications".