The Hindu Business Line : New IUC regime may trim BSNL income by Rs 500 cr

The BSNL Chairman noted that the growth in its cellular service was encouraging, with as many as seven lakh new customers signing in the month of March. "We expect this tempo to continue and soon we will be the number one operator beating all private competition".

NEW DELHI, April 15

BHARAT Sanchar Nigam Ltd (BSNL) is likely to take a hit in revenues by around Rs 500 crore this fiscal on account of the inter-connection usage charges (IUC) that are to be enforced from May 1.

According to Mr Prithipal Singh, Chairman and Managing Director, BSNL, the company had at first estimated a revenue loss of around Rs 1,000 crore, but the alternative tariff packages that were announced recently would soften the blow on account of the expected increase in traffic volumes. He noted that the alternative packages had specifically been tailored for the interests of the consumers.

"We have taken a conscious decision not to put a burden on the consumer and kept rentals and call duration at the earlier levels. The only steps we have taken were reducing the number of free calls and a decrease in pulse rates for calls from landlines to WLL and cellular networks. This is in keeping with the IUC regimes that is to come into effect from May 1".

Clarifying that the cost of a call from BSNL landline to BSNL cellular will be the same as to other private cellular networks, he stated that this was in keeping with the directives issued by the Telecom Regulatory Authority of India (TRAI).

The BSNL Chairman also noted that the growth in its cellular service was encouraging, with as many as seven lakh new customers signing in the month of March.

"We expect this tempo to continue and soon we will be the number one operator beating all private competition", he said.

As regards the international long distance operations, he said that since the company was to begin the services from 2004, discussions were already taking place and plans being finalised.

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