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MTNL?s Re 1 STD scheme becomes cheaper
MTNL has made another attempt to hold on to its diminishing tribe of fixed-line subscribers by reducing its rates further, reports M Rajendran.
The Mahanagar Telephone Nigam Ltd (MTNL) has made another attempt to hold on to its diminishing tribe of fixed-line subscribers by reducing its rates further.
On Friday, the MTNL reduced the fixed monthly rental charge for its 'One India Plan' from Rs 299 to Rs 180. Fixed-line subscribers who have opted for this scheme can make STD calls at Re 1 per minute to any place in India. This tariff scheme, however, unlike other schemes, does not allow any free calls.
The challenge before the MTNL is twofold — to check the growing number of subscribers surrendering their fixed-line telephone connections, and to add new subscribers. It has 37.6 lakh fixed-line subscribers now as against 38.5 lakh in June-end.
"The tendency among existing fixed-line users is to switch to mobile phones, unless the fixed line also combines with it an offer of a broadband internet connection," said NK Goyal, president of the Indian Manufacturing Foundation and a telecom expert.
Another expert, Ravi V Prasad, agreed: "Even private fixed line operators like Airtel and Reliance have found that subscribers expect, from a single line, both a telephone connection and the freedom to browse the internet at the same time."
According to a Telecom Regulatory Authority of India (TRAI) report, India had 13 crore mobile-phone subscribers and about five crore fixed-line subscribers in end September.
The 'One India' plan was launched last year. But with the monthly rental of Rs 299, it failed to attract users.
Arpita Pal Agarwal, associate director, PricewaterhouseCoopers, said, "This cut in rental is important since companies like MTNL and BSNL need to prevent their fixed-line customers from moving not only to private players but also to mobile phones."
RSP Sinha, chairman and managing director, MTNL, said, "The 'One India' scheme launched last year could attract only about one lakh subscribers but with reduction in rentals and the freedom to call any place in the country, we expect growth in both call time and number of subscribers. "
Added Anita Soni, director (finance), MTNL: "We have many more plans. I'm sure we will make up whatever business we have lost once we launch our internet protocol television, by which television programmes can also be accessed through the telephone line."
