Govt nod for NLD license to MTNL

New Delhi, May 9 (UNI) Telecom service provider in Delhi and Mumbai, MTNL, has got the license to operate National long Distance (NLD) services which is expected to lower the STD tariffs further.

Getting an NLD license would help save upto Rs 400 to Rs 500 crores for MTNL and the PSU plans to start an STD service soon.

MTNL is currently negotiating with BSNL for a lower carriage charge from the current 65 paise a minute.

The license will enable MTNL to offer STD services without having to use the network of either BSNL or any other private operator.

MTNL had already set the ball rolling by inviting bids from National Long Distance (NLD) players after it decided to snap out of the Rs 900-crore domestic long distance operations tie-up with carrier Bharat Sanchar Nigam Limited (BSNL).

MTNL is inviting Expressions of Interest (EOI) from all NLD players for carrying its NLD traffic, including Bharti, Reliance and VSNL. The tender is expected to be floated next week, sources said.

The telecom operator in Delhi and Mumbai, MTNL, hopes to save at least Rs 500 crore per annum through these fresh bids.

More than 90 per cent of the calls that MTNL generates are terminated in cities and towns where other NLD players have networks. MTNL does not have it own NLD network but BSNL has a countrywide presence which includes remote rural areas, edge over other players in the circuit.

UNI/RT RA VV1732