MTNL goes Tata, saves on NLD costs

18-02-2010

BSNL keeps on losing domestic long distance traffic


You would think BSNL's prices are lowest, considering that it has by far the biggest capacity in the domestic long-distance market. But MTNL says it saves big by switching from BSNL to Tata Teleservices.

MTNL has shifted a part of its national long-distance (NLD) traffic to Tata Teleservices according to CNBC-TV18 reports, which say the move will ensure saving of 55% in carrier charges on MTNL's NLD traffic. MTNL currently pays 36 paise per minute to BSNL, so its cost will fall to 16 paise.

MTNL accepted bids of TTSL, RailTel, and Tata Communications. It has begun diverting NLD traffic to TTSL. It plans to tie up also with RailTel and Tata Communications and will issue letters of interest soon. It says a part of its NLD traffic would remain with BSNL.

NLD calls accounts for 30% of MTNL's revenue.




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