BSNL considering slashing International long distance telephony rates

The state owned Telecom Company Bharat Sanchar Nigam Limited has announced that they are considering slashing down the rates of the International Long Distance telephony (INLD) rates. The cut can be as big as 20% as the telecom giant is all set to put its own long distance infrastructure in the four metros. In addition, they are also aiming to lay their own network in the neighboring country of Sri Lanka.

The company currently routes their ILD traffic through other private ILD operators. BSNL director (commercial and marketing) G S Grover said in a statement to a media group: “This will be replaced by our own Long Distance TAX (trunk automatic exchange) at four metros for which the current upgrade is going on. The joint venture with Sri Lanka Telecom cable will connect us from Tuticorin to Colombo and will provide us enough capacity.”

As the company manages to remove these overheads, they might slash their international long distance call rates by as much as 20%. BSNL has said that the cabling between India and Sri Lanka would be costing it around Rs 80 crores and would have an initial capacity of 20 Gbps. Ti would also be capable of carrying video communication too.

Another reason for the company to drop its INLD rates is the lowering revenue share and the annual licensing fees.

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