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MTNL gets NLD licence, STD rates set to fall

State-run MTNL has received the national long distance license from the government, a development that can start a fresh bout of cuts in STD rates, starting with Delhi and Mumbai, two of the most lucrative telecom markets in the country.

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NEW DELHI: State-run MTNL has received the national long distance license from the government, a development that can start a fresh bout of cuts in STD rates, starting with Delhi and Mumbai, two of the most lucrative telecom markets in the country.
 
"We have received the NLD licence and we are busy preparing the cost structure for our STD service between Delhi and Mumbai... there has been no decision taken yet on how to carry the traffic in the rest of India... we are discussing with BSNL on getting a competitive rate (carriage charge). Otherwise we are looking at various options where we can get competitive rates," Anita Soni, director
(finance), MTNL said.
 
Possessing its NLD licence could save MTNL up to Rs 400 crore when it begins carrying its own traffic. The PSU expects to start a STD service soon.
 
Asked whether MTNL is negotiating with BSNL for a lower carriage charge from the current 65 paise a minute, she said.
 
"We want a competitive rate."
 
Soni said the PSU was going to focus on increasing traffic between Delhi and Mumbai on its own network and for that it wants a 'competitive rate' for the rest of the country that it should clear in two to three days.
 
If MTNL is looking at offering local call rates between Delhi and Mumbai riding on its own network, she said "cost structure is being worked out and it is premature to say anything on this.
 
Soni declined to comment on the controversy where MTNL is accused of not paying STD traffic charges to BSNL.
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