Mahanagar Telephone Nigam Ltd to start its long-distance operations

Telecom rates are set to decline even further as the government owned telecom company MTNL has been given a letter of intent (LoI) for starting its own long-distance operations.

In addition, two other companies RailTel Corporation and PowerGrid Corporation have also been granted NLD licenses.

This might see further drops in rates of long distance calls especially in the metro cities of New Delhi and Mumbai where MTNL operates.

RailTel and PowerGrid have their network spread in a broader area and this might see the prices dropping even further. The telecom industry experts believe that the increased competition would lead to increased competition and also a reduction in STD calling rates.

Considering Delhi and Mumbai are two of the most lucrative traffic segment for the telecom market, a more powerful MTNL is good news for the consumers in the end.

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