New Year slash: BSNL reduces monthly rental

NEW DELHI: To meet the competition in the telecom market Bharat Sanchar Nigam Limited (BSNL) has announced 28 percent reduction in fixed line rentals from January 1.

BSNL has slashed the monthly rental to Rs 180 from the existing Rs 250 in urban areas and Rs 210 in rural areas. With the reduction in rental charges, BSNL revenues would be hit by up to Rs 600 crore annually.

“After this reduction in the tariffs the subscribers will save up to 28 percent in their monthly bills. We have retained free calls at 50 and tariff at Rs. 1.20 for 3 minutes call,” CMD BSNL AK Sinha said. In the year alone, 4 lakh lines were surrendered which has hampered the growth in the sector. According to BSNL authorities the growth in the sector was at minus five (-5) till November.

BSNL has also launched a pre-paid card with lifetime validity for Rs 949, which includes preloaded talk time of Rs 99. The local call rates under this scheme would be Rs 1.60 per minute within BSNL network and Rs 2 to other networks. For STD calls, the rates would be Rs 2.40 within BSNL and Rs 3 to other networks.

Mahanagar Telephone Nigam Limited (MTNL) has also launched the lifetime validity pre-paid scheme. With massive competition from the private operators to tap the mobile market, both the PSUs have joined the race of lifetime validity.