BSNL, MTNL launch broadband

Public Sector telecom majors Mahanagar Telephone Nigam Ltd MTNL and Bharat Sanchar Nigam Ltd BSNL on Friday simultaneously launched its ...

Public Sector telecom majors Mahanagar Telephone Nigam Ltd MTNL and Bharat Sanchar Nigam Ltd BSNL on Friday simultaneously launched its much-awaited broadband internet services in over 200 cities across the country, fixing a highly competitive Rs 400 per month tariff for home users.

The nationwide launch of broadband services, inaugurated in Chennai by Union IT and Telecommunications Minister Dayanidhi Maran aims to achieve one million customers by December 31, 2005.

At a highly competitive price of Rs 400 per month for home users, the broadband services, which will have a minimum speed of 256 KBPS, will be 17.5 times faster than a dial-up connection and about eight times faster than ISDN.

Speaking via video conference from Chennai, Maran said the tariffs fixed by BSNL and MTNL for the broadband connection at Rs 400 per month for home users and Rs 1200 for business units was aimed at bringing high-speed internet access to rural masses.

To make his point, the minister compared the rates with other ISPs and said, 8216;8216;Tata Indicom8217;s is at Rs 1,500 per month, Airtel8217;s at Rs 1,400 per month and Sify8217;s is at Rs 2,750 per month. 8216;8216;BSNL and MTNL have the cheapest tariffs for broadband,8217;8217; he said.

Maran8217;s statement could spell trouble for private players. Most private broadband players like Tata, Sify and Bharti charge close to Rs 1,000 per month for broadband connectivity.

In Chennai, bsnl CMD A.K. Sinha said by March 31, the PSU would provide 50,000 broadband connections. It has set a target of achieving two million customers in 2006 and three million in 2007.

Pvt players put up a brave face

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MUMBAI: With MTNL, BSNL announcing broadband services at as low as Rs 400 per month, the attention has now shifted to private players who have so far been charging anything between Rs 1,000 to 1,500 per month. 8216;8216;We will not be affected by the low price,8217;8217; claimed the spokesperson of a private broadband company. 8216;8216;Bandwidth prices are bound to fall further and as they plummet so will our prices,8217;8217; said another private player. Things could hot up further after Reliance8217;s entry into the broadband space.