STD rates set to fall further

A day after state-owned MTNL lowered its fixed line call rates between Delhi-Mumbai to local call rates, STD rates for both fixed and mobile locations in rest of the country are also set to fall significantly as the company received bids at much lower rates for carrying its STD traffic.

Three private operators - Bharti, Reliance and Tata-owned VSNL - had bid for carrying MTNL's STD traffic throughout the country.

According to officials, rates less than 20 paise and 65 paise, depending upon the distance slab, has been received. According to industry sources, Reliance bids could emerge as lowest for various lucrative locations.

Anita Soni, director (finance), MTNL told PTI "we have received bids at less than ceiling rates." Soni, however, declined to give details.

Three private telecom operators - Bharti, Reliance Infocomm and VSNL - had bid for MTNL's Rs 60 crore (Rs 600 million) tender for carrying and delivery of outgoing STD calls across the nation.

BSNL, which was till now the preferred carrier being a PSU, has skipped participating in the bidding process.

BSNL CMD A K Sinha had said, "We have not sent our bid... but we will take a call on it later on. We will see what rates are being offered and then take a decision."

The PSU, which received a STD licence earlier this month, is hopeful of getting much better and competitive rates compared to paid by them now to BSNL, sources said.

The estimated cost of the tender for IT and telecom equipment is Rs 60 crore. Sources in the industry indicated that the bid could go slow as to 20 paise for certain locations.

MTNL officials said bids received would be evaluated in next few days before choosing a preferred carrier for different locations.