The new prices show 40 per cent reduction and now subscribers can avail 512 kbps for only Rs 999 instead of Rs 1599 per month.
Recently, Airtel, which has nearly 1 million subscriber in telemedia segment lashed its broadband prices till 40 per cent offering 512 kpbs unlimited connection for Rs 1,099 per month.
As if to compete with other broad band players, MTNL would soon increase the speeds of 256 kbps to 512 kbps and 512Kbps, 1Mbps and 2Mbps users to 1Mbps, 2Mbps, 4Mbps respectively with no extra charge.
MTNL's decision is also seen as ground work for TRAI's recommendation, which makes it mandatory for all broadband services to offer minimum 2 Mbps.
This particular service of MTNL would soon be available in Delhi also and would be valid for both new and old customers.
However, some like Reliance Communication and other wireless broadband services are yet to participate in the war of prices.