New Delhi, May 28 :     Videsh Sanchar Nigam Ltd (VSNL) today announced a 25-hour Internet package at Rs 990 to attract first-time users, intensifying the market war with MTNL which has proposed a phone free for new Internet customers. VSNL?s offer also follows the low rates announced by Bharti for its Internet services in Delhi, Mumbai and Bangalore. ?VSNL is upgrading its infrastructure; shell account users will now be upgraded to TCP/IP immediately,? said Amitabh Kumar, chairman and managing director of VSNL. Mahanagar Telephone Nigam Limited (MTNL), VSNL?s main rival, is coming out with three Internet packages that offers a phone at reduced registration fee and other benefits. MTNL, which offers Internet services in Mumbai and Delhi, will place the proposals at its board meeting which is scheduled for this month. The company will invest about Rs 50 crore on a software system to enable joint billing of Internet and telephone services. MTNL chairman and managing director S. Rajagopalan said ?Our new Internet packages will target high, low and very low users. This is important to not only retain the existing users but also to bring in more customers.??