STD calls at Re 1 per min on the cards
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[February 10, 2006]

STD calls at Re 1 per min on the cards

(The Times of India Via Thomson Dialog NewsEdge)NEW DELHI: Finally, a flat rate of Re 1 per minute for all STD calls-from Kashmir to Kanyakumari.

After months of dithering, state-owned telecom firms BSNL and MTNL are expected to announce new packages on Friday, with flat STD rates for landline and cellular services.

At present, peak STD rates are Rs 2.40 a minute for landlines and about Rs 3 for cellphones.

Local call rates are also expected to be reduced to Re 1, down from Rs 1.20 for three minutes.

But to be able to avail of these benefits, you will have to opt for the new monthly rental plans which could range from Rs 300-500.

The new rates are likely to take effect next month. Private firms like Reliance have already announced such plans, but BSNL\MTNL, which have about a 90% market share as far as landline connections are concerned, are expected to improve upon them substantially.



Senior officials, however, declined to give the exact details of the new tariffs.

The new rates have been re-worked as part of communications minister Dayanidhi Maran's pet project-One India-which aims at making the country one calling area with regard to STD calls.



The issue has kicked up much dust over the last few months, especially with regard to the Rs 5,000 crore losses that BSNL may have to bear, and as to whether the rates can be extended to all BSNL/MTNL subsribers who pay anywhere between Rs 50 and Rs 180 as monthly rent.

Besides, telecom experts have expressed doubts about whether such low rates will be possible with the existing IUC (interconnect user charges) and ADC (access deficit charges), the two crucial components of all calls that determine tariffs.

Telecom regulator Trai is still to finalise the new IUC\ADC rates which, at present, can be as high as Rs 1.70, making a Re 1 call untenable.

But it is widely believed that with higher rentals under the new packages and by reworking the IUC/ADC, One India can become a reality.

Trai is expected to give out the details of the new charges by the end of the month.

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