As per the new unlimited access package, the country's largest private Internet Service Provider (ISP) has offered the `UnLtd Rain or Shine' package at Rs 198 per month. This, according to industry sources, is the lowest tariff prevailing in India.

This development comes close on the heels of BSES Telecom, a subsidiary of power utility major BSES, announcing a cut in Internet prices at Rs 225 a month. It is learnt that Rolta India, BPL Innovision, Pacific Internet and Zeenext are also likely to announce their responses shortly.

In fact, Satyam Infoway had announced its `UnLtd' package at Rs 299 a few weeks ago, kicking off the price war. Industry sources say that VSNL's free night surfing hours has also forced other ISPs to review their marketing strategies. It is reliably learnt that VSNL is likely to achieve the target of two lakh new users within the June-July period with its 50 per cent cut in rates.

According to sources, Satyam offered a 24-month package at Rs 4,750 (Rs 198 per month), 15-months access for Rs 3,588 and four-month package at Rs 999 (Rs 250 per month). "When the customer buys a start-up or top-up/renew a SatyamOnline connection and registers on or before July 15, the new offer is applicable," industry sources said.

BSES Telecom's Powersurfer.net had launched three packages - Join Net, Discover Net and Explore Net - under the unlimited Internet access plan. The Join Net package provides unlimited access for 24 hours throughout the month for Rs 275.