BSNL mobile to be 50% cheaper than competition

THIRUVANANTHAPURAM: There is nothing official about it, but Bharat Sanchar

Nigam Ltd. (BSNL) is likely to charge Rs 1.10 per call for mobile phone access

in Kerala both for incoming and outgoing calls as against the earlier decision

to charge Rs 1.25 per call, according to BSNL sources. BSNL is able to afford

such low rates because they already have a strong presence in the basic services

and has strong network throughout the country to provide all-India roaming

services.

BSNL Kerala Circle had earlier announced its decision to launch mobile

services from August 2002. A final decision regarding tariff may be announced

only in July when the corporation will start marketing the services. Motorola

has been assigned the work of erection and commissioning of equipment and towers

throughout the state through competitive tendering. BSNL Kerala Circle has been

assigned charge of overseeing the tendering, erection and commissioning of

mobile services in south India.

BSNL plans to provide comprehensive coverage for its mobile customers by

setting up 100 communication towers in various parts of the state.

Thiruvananthapuram, the state capital itself will have 12 towers, the highest

followed by Ernakulam. BSNL expects majority of its customers to be from major

cities such as Thiruvananthapuram, Ernakulam, Thrissur and Kozhikode. BSNL rates

are likely to be cheaper by 50 per cent against its competitors.

BSNL plans to provide 1-1.5 lakh connections in the first phase of which

around 75 per cent would be pre-paid cards. The validity period for pre-paid

cards would be two months as against the existing one month for private

operators.

For BPL Mobile and Escotel will now be forced to bring down their tariff

rates in tune with the BSNL rates or risk the possibility of losing its

customers. Earlier, BSNL had introduced direct dialing facilities in phased

manner up to 200 km to face the competition from mobile operators. Gradually,

the direct dialing faciltiy may be extended to all exchanges within the state.

That along with cheaper mobile telephony from BSNL will give Escotel and BPL a

run for their money.