MTNL's foreign calls cheaper

Firm slashes tariffs by 6.25% for calls to the US, UK and Canada.

Mahanagar Telephone Nigam Ltd, the telecom service provider in Delhi and Mumbai, today reduced international long-distance tariffs for its fixed-line and WLL subscribers by 6.25 per cent for calls to the US, UK and Canada; and by 25 per cent in the case of other countries.

The new tariffs for MTNL's low-rate users (80 paise per call) have now become more attractive compared with those of Bharat Sanchar Nigam Ltd, which announced a tariff cut of up to 25 per cent on Thursday.

Like BSNL, MTNL has also cut tariffs following the Videsh Sanchar Nigam Ltd's decision to lower settlement charges.

For its GSM-based Dolphin and Trump mobile subscribers, MTNL announced a 20 per cent cut in international call tariffs for Southeast Asia, the US, the UK and Canada with calls to cost Rs 12 a minute from April 10, down from Rs 15 a minute. Tariff for the West Asian and African countries has been cut by 25 per cent to Rs 15 a minute.

For the fixed-line and Garuda users, the pulse rate has been set at 8 seconds for the US, the UK, Canada and Southeast Asian countries; and at 4 seconds for other call destinations.

Private operators are also likely to follow suit and cut their call rates. Tata Tele is expected to review its rates next week. Touchtel executives, however, could not be contacted for comments.

MTNL chairman and managing director RSP Sinha said the effect on revenue would be offset by the increased volumes. He, however, said the public sector undertaking had not estimated the extent of revenue loss due to the rate cut decision.

According to the new rates for fixed-line and Garuda users, calls to the US, the UK and Canada will cost Rs 9 a minute, instead of the current Rs 9.60 per minute for those on the normal rental plan with call charges of Rs 1.20 (high rates).

For those under schemes with higher rentals, paying 80 paise per call (low rates), the tariff has been reduced from Rs 6.40 a minute to Rs 6 a minute. Call charges for the Southeast Asian countries have been reduced by 25 per cent to Rs 6 a minute for those paying low rates and Rs 9 per minute for high rate customers.

In case of African and West Asian countries, rates have been slashed by 25 per cent to Rs 12 under low rates and Rs 18 per minute for high rates.

For the rest, the new rates have been set at Rs 12 a minute (low) and Rs 18 (high), instead of the current Rs 14.12 per minute and Rs 21.18 per minute, respectively.