Is MTNL hanging up on BSNL?

Published on Sat, Jul 29, 2006 at 10:52 |  Source : Moneycontrol.com

Updated at Mon, Jul 31, 2006 at 08:17  

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MTNL has asked Reliance Communications to carry Reliance-bound traffic, which is being carried on BSNL 's network, reports CNBC-TV18.

The grand merger of BSNL and MTNL is yet to take place. But the spat between the two PSUs over carriage fees is intensifying. MTNL has decided to route all RCL bound traffic on RCL 's own NLD network instead of routing it through BSNL.

MTNL and BSNL have been at loggerheads over the last 3 months over carriage fees. MTNL has been using BSNL's STD network to carry its national long distance traffic paying a carriage cost of 65 paise per minute. But MTNL wanted carriage fees to be cut to 40 paise mark and so it invited private players to submit their bids. MTNL has now decided to dump BSNL.

RCL has offered to carry calls at a charge of a little over 40 paise. MTNL has also invited other players like VSNL and Bharti for negotiations for non-RCL traffic.

If MTNL were to completely hang up on its big brother then its carriage costs, which are currently at about Rs 300 crores per annum could fall by about 35%.

  

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