The move gains importance as BSNL had opposed Mahanagar Telephone Nigam's [Get Quote] (MTNL) move to provide group-dialing access to private players in March 2005. Meanwhile, MTNL implemented the scheme and permitted calls up to 200 km to be treated as local calls.  

According to sources close to the development, BSNL has re-examined the issue and decided to permit group dialing between the company's network and that of private operators. It has been decided to extend this facility to inter-short distance charging area (SDCA), intra-circle calls (within the state or a licensed service area).  

Subscribers of private landline operators can call within a state by pre-fixing group dialing code - 95 - and then dialing the subscriber's number. At present, this facility is available on BSNL's network, but not between BSNL to a private network.

According to an analyst tracking the sector, most private operators such as Bharti Airtel [Get Quote], Reliance Communications [Get Quote] and Tata Teleservices [Get Quote] are providing landline services and this will help their subscribers getting cheaper call rates.

Group dialing calls are cheaper than STD calls as they are treated on par with local calls, but with a difference in pulse rate. While local calls are charged at a 180-second pulse rate and that of group dialing at a 120-second pulse.

"But compared with STD calls, there is still a major cost saving," he said.

Private telecom majors are already treating calls within a state as local calls, irrespective of the distance. This move is also likely to arrest the waning interest in fixed-line telephones in the country.