New MTNL plan to cut STD rates

State-run telecom firm Mahanagar Telephone Nigam Ltd plans to apply for a national long distance licence to the department of telecom shortly, in an effort to bring down its STD call charges for its basic telephony customers in Delhi and Mumbai.

Sources said MTNL has already petitioned DoT for its keenness to have an NLD license for two reasons - the recent license fee cut for NLD to Rs 2.5 crore (Rs 25 million) and more importantly, to abolish the carriage charges it currently pays to private and other NLD operators to carry its STD traffic.

If MTNL has its own licence, it would not have to pay any carriage charges as it will carry its STD calls on its own network, which would result in significant STD tariff cuts for its basic telephony users.

When contacted, Anita Soni, director (finance), MTNL, said, "When MTNL was formed in 1986 the licensing provisions had enabled it (to have) an NLD license for its own network. But that was in 1986, it has to be seen in today's scenario. The department of telecom will take a call on this plan of MTNL."