Date:09/04/2005 URL: http://www.thehindubusinessline.com/2005/04/09/stories/2005040901810500.htm

Back BSNL mulls cut in ISD tariffs

Thomas K. Thomas

New Delhi , April 8

BHARAT Sanchar Nigam Ltd is mulling a cut in international long distance tariffs especially in sectors where the current rates are on the higher side.

One of the sectors that may see a drop in tariff is the India to Gulf ISD calls, which now costs Rs 18 a minute. This is on the higher side compared to Rs 7.20 a minute when calling North America or the UK.

Mr N.K. Mangla, Director, BSNL said, "We are thinking about bringing down the ISD tariffs but a final decision is to be taken."

A tariff revision by BSNL would result in another price war with the Tata-managed Videsh Sanchar Nigam Ltd.

Meanwhile, the State-owned company is gearing up to launch its own ILD network by June. The company is looking at a number of options including forming a consortium with ILD operators and laying its own undersea cable network. It is also looking at the option of buying out part of Videsh Sanchar Nigam Ltd's ILD infrastructure. BSNL has set up an internal committee to examine these options.

BSNL has been planning a cable between India and Sri Lanka where it has begun ILD services on a microwave link. Currently, BSNL is riding on VSNL's ILD network through an arrangement that was worked out by the Government at the time of disinvesting stake in VSNL to the Tata group. Because of the significant decline in prices of ILD services due to regulatory interventions and market competition, the ILD market has declined from around Rs 5,000 crore during FY2003.