BSNL calls to US, UK at Rs 6/min

Tariff war in the international long distance is hotting up with state-owned Bharat Sanchar Nigam Ltd dropping ISD rates to as low as Rs 6 a minute for calls made to the US, the UK and Canada. The move comes close to private operators Airtel and Idea Cellular dropping their ISD rates by 50 per cent to Rs 7.20 a minute and Rs 7.50 a minute, respectively.

BSNL has also dropped ISD tariffs for calls to Europe, Asia, SAARC to Rs 8 a minute compared to Rs 10 a minute being offered by private operators. ISD calls to other countries will be available for Rs 10 a minute for a a BSNL subscriber, while other private operators are offering the same at Rs 40 a minute, making the state-owned company the cheapest long distance operator.

Meanwhile, Airtel on Monday matched BSNL tariffs only for its fixed line telephone users whereby calls to the US is available for Rs 5.99 a minute.

The reduction in tariff is a result of the recent cut in access deficit charges by the telecom regulator. Though the charges were reduced by Rs 1.70 a minute, operators have passed on higher benefits to the subscribers as far as ISD calls are concerned.

Market analyst said that there was further scope of reduction in ISD rates with international bandwidth rates on the down. The reduction in ISD tariffs follows similar tariff cuts in the STD segment with most operators announcing a Re One per minute package.