BSNL cuts tariffs to boost usage

NEW DELHI: Bharat Sanchar Nigam Ltd, India's No 2 cellular services provider, has cut its rates for long distance and local cellular calls in a bid to match similar cuts by private players.

New Delhi-based BSNL slashed cellular-to-cellular national long distance tariffs (NLD) by between 25 percent and 66.7 percent and those of cellular to fixed-line or wireless in local loop calls by between 25 percent and 65.2 percent.

Local cellular call rates were cut by between 8.3 and 43.8 percent. The new rates come into effect from May 17. "We expect (cellular) usage should increase by 25 percent if not more," Prithipal Singh, chairman of Bharat Sanchar Nigam Ltd (BSNL), told reporters.

BSNL's rate cuts came after two leading private cellular firms, Bharti Tele-Ventures and the Indian unit of Hutchison Whampoa conglomerate, slashed tariffs by up to 60 percent.

Singh said the unlisted BSNL, which has more than 2.8 million cellular customers, would now charge a minimum of Rs 1.80 for one-minute domestic long distance cellular-to-cellular and cellular to fixed-line phone calls.

He said the new rates were in line with fresh guidelines from the sector regulator, TRAI, that came into effect on May 1.