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MTNL spares VSNL, undercuts ISP rates by only 15%

31st Jan 1999      Manjeet Bhatia @megsinet.net

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             MTNL spares VSNL, undercuts ISP rates by only 15%
             The Mahanagar Telephone Nigam Limited board has approved a
             three-tier tariff structure for its Internet service at Rs
             2,550 for 100 hours, Rs 5,525 for 250 hours and Rs 8,500 for
             500 hours. 
            Bowing to pressure from within the government, the MTNL board,
            which met in New Delhi on Friday, decided to drop the proposal
            for a 30 per cent cut at the last moment. 

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             For now, the company has undercut the Videsh Sanchar Nigam
             Limited tariff by only 15 per cent. 

            Mahanagar Telephone Nigam Limited Chairman and Managing
            Director S Rajagopalan told reporters that "This tariff is
            only valid for three months and will be reduced later." 

            The company will do a "soft launch" of the service on February
            2 followed by the commercial launch on February 9. 

            The tariff for the service will be in addition to local call
            charges. 

            MTNL will offer 5,000 connections each in New Delhi and Bombay
            to start with, followed by further increase to 20,000
            connections by April 1999. The company is aiming for 100,000
            connections by the end of this calendar year, said Rajagopalan
            

            Consumers are likely to face less trouble in accessing their
            accounts because MTNL has promised a line to subscriber ratio
            of 1:10 with 480 ports each in Delhi and Bombay. 

            MTNL will also offer interconnection at 4 MBPS, with a dynamic
            re-routing facility. The connection will be at a speed of 28.8
            KBPS, necessitating a separate modem in order to benefit from
            this high-speed service. 

            For the ISDN dial-up service at 64 KBPS, MTNL will charge Rs
            4,675 for 100 hours, Rs 10,625 for 250 hours and Rs 16,150 for
            500 hours. 

            In the case of a 128 KBPS connection, the company proposes to
            charge Rs 9,350 for 100 hours, Rs 21,250 for 250 hours and Rs
            32,300 for 500 hours. 

            MTNL has also launched a number of new 'intelligent network'
            services including a televoting service for television opinion
            polls and an account-card calling aimed at travelling
            executives and corporations. 

            MTNL has posted a 25 per cent increase in net profits to Rs
            3.4 billion in the third quarter of the current financial
            year. The company has registered a net profit of Rs 2.72
            billion during October-December 1998, according to a company
            release. 

            Total revenue of the company during the quarter has increased
            by 10.67 per cent to Rs 13.06 billion compared to Rs 11.8
            billion during October-December 1997. 

            MTNL has also recorded a 161.27 per cent increase in other
            income to Rs 559.9 million from Rs 21.43 in the quarter as
            against the third quarter of 1997. 

            - Compiled from the Indian media 

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