Wednesday, February 28, 2001
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Centre may reduce ISD rates by fiscal end 

Our Corporate Bureau  
Mumbai, Feb 27: The BJP-led government at the Centre is contemplatingreducing the international call rates by the end of 2001. The Centreproposes to reduce these rates at a benchmark level of 69 cents per minutefrom the present level of 85 cents per minute as arrived at theInternational Telecom Union.

After the launch of the state-run MTNL's dolphin cellular service in Mumbaion Tuesday, Telecom Commission chairman Shyamal Ghosh told reporters thatthe Centre would encourage unrestricted entry in the international voicetelephony after 2002, when the VSNL monopoly would be over. Mr Ghosh saidthat the Centre would invite bids from the telecom companies for the fourthoperator within a week. He further declared that the global advisorappointed by the Centre would soon make a presentation on the VSNLdivestment.

Mr Ghosh ruled out the possibility of a 100 per cent foreign directinvestment in cellular service at this point, adding, that although 6,000applications have been so far sold out for the the MTNL's dolphin cellularservice in Mumbai, it would increase after the it gets stabilised. MTNL hasset a target of 1 lakh cellular connections each, in Mumbai and New Delhi.

MTNL proposes to expand its capacity to 2.25 lakh in the second phase and 4lakh in the third phase as far as cellular connections are concerned inMumbai.

Communications minister Ram Vilas Paswan said that his ministry would lookinto all possibilities whereby MTNL can become a basic service provider inthe rest of Maharashtra. Mr Pawan announced that tele-density at thenational level would be increased to 15 per cent by 2010, from the presentlow level of 3 per cent. Telephone connections would be increased to 17.50crore from the present level of 3.50 crore during the same period.

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.

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