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Regular-article-logo Wednesday, 16 July 2025

MTNL PLANS NET RATE CUT 

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FROM M RAJENDRAN Published 25.06.99, 12:00 AM
New Delhi, June 25 :     Mahanagar Telephone Nigam (MTNL) will slash Internet rates further and set up a gateway in Mumbai to expand its subscriber base. The final decision on the reduction, which could be in the range of 10-15 per cent, will taken by the company board in the first week of July. ?The board is meeting on July 6 to take up the reduction in Internet tariffs. We have been closely watching the rates of our competitors. It is difficult to reveal the magnitude of the cut before the board decision but the move is expected to boost the growth of Internet subscriptions.? MTNL also held discussions with the department of telecommunications (DoT) to allow its Internet subscribers an all-India login facility. ?We have already taken up the issue of permitting subscribers to log in from anywhere in the country with the DoT. We expect the clearance early next month,? said Rajagopalan. Meanwhile, DoT is likely to clear MTNL?s proposal to set up a gateway in Mumbai soon. Initially, it plans to use DoT?s 34 megabit pipeline (fibre optic cables) and later opt for a high-capacity 155 megabit pipeline. The company will negotiate the cost of setting up the gateway with major international carriers such as Videsh Sanchar Nigam Limited (VSNL), FLAG, AT&T and others. The cost of setting up the gateway varies between Rs 20 crore and Rs 75 crore. ?We had planned to apply for an all-India Internet licence, but we have put off the decision till we achieve a subscriber base of about 35,000 in Delhi and Mumbai. Currently, we have about 6,000 subscribers in the two cities,? said Rajagopalan. The existing fixed-line customers of MTNL in Delhi and Mumbai will get a free phone if they take an Internet connection. The scheme, to be launched on July 1, 1999, is expected to help increase the company?s Internet customers. Rajagopalan did not rule out malpractices in the new scheme but he is confident the facility will increase the penetration of personal computers and Internet in the two cities, and across the country. ?There will be some who may resort to unfair practices but a majority of customers aspiring for Internet connections or an additional line, will benefit from the scheme,? Rajagopalan said.    
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