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MTNL to cut leased-line rental by 15%

A top Mahanagar Telephone Nigam Limited official on Friday said that MTNL's executive board had given its nod for a cut in the Internet tariff to expand its subscriber base.

The executive board is also said to have approved a 15 per cent cut in leased line rental, said G D Gaiha, a board member.

The new slashed tariff will come into effect after the Telecom Regulatory Authority of India, or TRAI, gives its approval.

The official refused to give any further details on the rate-cut before the TRAI nod. However, he reiterated that the rate would be 'competitive'.

Ealier this week, MTNL officials had said that the company planned to slash Internet access rates as part of a "competitive price" strategy, officials said on Monday.

"Our new rates will be announced anytime now. Our prices will be competitive. Many changes are being planned," a spokesman had said.

About 10 days ago, the state telecom company Videsh Sanchar Nigam Limited, or VSNL, halved its Internet access rates from Rs 1,500 for 100 hours to ward off increasing competition.

Meanwhile, MTNL sources said that its bid to cut prices was "not in reaction to the VSNL package. We have been drawing up a fresh package for some time. In this business you must have a flexible strategy."

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