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This is an archive article published on April 29, 2008

Bharti, RCom cut STD rates; BSNL likely to follow suit

Long distance tariffs took a nosedive today with two leading operators - Bharti and Reliance...

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Long distance tariffs took a nosedive today with two leading operators — Bharti and Reliance — announcing rate cuts and free calls, while state run operator BSNL said it will look into the possibilities of reducing the STD rates.

After local call rates touching the bottom of tariffs, long distance call rates — STD and roaming — are now entering the reduction phase, benefitting customers in the world’s second largest wireless market.

Anil Ambani-led RCom launched unlimited STD at Rs 440 a month for post-paid users while its prepaid customers will be able to make unlimited STD calls at Rs 496 a month for calls within the network.

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Earlier, the country’s leading cellular operator Bharti Airtel cut long distance and roaming tariffs by up to 43 per cent benefiting its 62 million customers and starting a new price war on this segment.

“Our roaming rates are already the lowest…there may not be any more scope of reducing. Our tariff for outgoing calls in roaming is as low as 65 paise. We will see if in STD something can be done,” BSNL director (finance) S D Saxena said.

Airtel has reduced STD rates by 43.39 per cent to Re 1.50 per minute from the earlier Rs 2.65 per minute. It is available for both pre and post-paid users. The company has also cut roaming rates as per which a customer will be able to receive a call while roaming at Re 1 per minute, as compared to Re 1.75 per minute at present, a reduction of 42.85 per cent. Further, while roaming, Airtel customers can make outgoing local calls at Re 1 per minute and STD calls at Re 1.50 per minute.

A Vodafone spokesperson said, “Vodafone has always endeavoured to deliver best value to its customers and we will offer them the best value in this instance too.” The company did not announce any immediate tariff reduction plan on roaming or STD.

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Tata Teleservices also did not announce any revised long distance tariffs. Telecom regulator Trai has been urging operators to reduce roaming rates, which have been on the higher side.

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