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Breaking News : BSNL slashes STD tariff to 80 paise for 3 mins
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BSNL unleashed a fresh tariff war in the STD domain by slashing STD tariffs to 80 paise per 3 minutes.

Earlier the STD tariffs were 80 paise for 2 minutes.

The tariffs are not applicable to PCOs and calls made to special services.
The state-run (BSNL)Bharat Sanchar Nigam Limited has decided to slash landline STD call charges. With this, BSNL's landline STD and local call rates will be the same.

Pulse rate for calls from BSNL landline to any landline through out the country will be for three minutes as compared with one minute pulse rate earlier. With this BSNL does away with STD tariff for landline calls for its customers.

It will hence breathe life into its non-mobile business, which continues to be its largest revenue earner for BSNL. It is important for BSNL to improve the fixed line business as it is the largest fixed broadband player in the country. According to TRAI (August,2010), India had 36 million landlines for the last three years. BSNL has a 74% market share, followed by MTNL, which provides services in Mumbai and Delhi, which commands 10%, Bharti Airtel with 9% and Reliance Communications and Tata Teleservices with 3.4% share each.

However, reduction in STD tariff may not create rapid competition in this sector as the BSNL rivals are not keen on expanding their fixed line business. Fixedline operators such as MTNL, Bharti Airtel, Reliance Communications and Tata Teleservices are waiting for the customer reaction to the BSNL scheme.

Ironically, the announcement of the new STD scheme happened at a time when its employees begin a three-day strike, disrupting services, to protest against the telecom company’s failure to procure mobile networks in time.

From Wednesday, all 27 million landline customers of the loss-making telecom company can access this facility and not pay STD charges when calling any landline in the country, a move that is seen by many industry watchers as the first step towards doing away with a separate slab for long distance tariffs. In addition to tariffs, the pulse rate will be that of a local call. So, a long distance call will carry a 180-second pulse, unlike the earlier format when STD calls were billed on a per minute basis. Currently, BSNL’s local calls cost between 80 paise - 1.20 for three minutes, based on the tariff plan the customer has chosen, and this same pricing will be extended to all landline-to-landline calls, irrespective of distances. This also works out cheaper to long distance tariffs on mobiles, which currently range from 60 paise to 1.50/minute. This new facility will be available to all its existing customers without any activation fee or procedure.

BSNL launched this to improve their existing customer base by giving more customer satisfaction by providing good voice quality, minimum call drop rates and minimum tariff for their calls.

BSNL has been on launching spree with their new plans and offers for their customers and fixedline segment has been a prominent one.

One month back, union Minister of State for Communications & Information Technology Sachin Pilot launched BSNL new plan combining landline and mobile services. Under the scheme, called Pyari Jodi, landline customers of BSNL can now take a free SIM card and can make unlimited free local calls to his landline/WLL number. On activation, the customer will also get Rs 15 of talk value, 1000 local SMS, 1000 national SMS and 1000 MB data free.

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