New Delhi: State-owned telecom service provider MTNL on Tuesday raised the bar for competitive tariffs by announcing a half paisa-per-second plan for mobile calls on its 2G as well as 3G network in Delhi and Mumbai circles. For calls made to other networks, the tariff is 1 paisa-per-second, MTNL chairman and managing director RSP Sinha said. Under the per-second billing plans which will become effective from December 2, subscribers will pay one paisa per second for local and STD calls across the country on all networks, he said. MTNL, which also offers 3G services, will also offer video calls at one paisa per second across the country. It has also slashed the local SMS rate to 25 paise per SMS, although the STD SMS rates remain Re 1 per SMS. The tariffs are applicable for both pre-paid as well as postpaid users and affect MTNL’s 4.4 million mobile customers which includes 1.65 lakh 3G customers. According to Sinha, MTNL wishes to mitigate the difference between 2G and 3G customers by making 3G more affordable. Its 2G customers can convert to 3G by paying a nominal conversion charge. This is an incentive as this allows for usage of 3G content and quality at 2G rates. With this, MTNL is one of the last to take the plunge and join other service providers like Airtel, Vodafone and Aircel as well as state-run BSNL who have already introduced per-second plan. The price war, which is aimed at wooing new users ahead of fresh entrants waiting to launch their services, has raised concerns about the profitability of these firms.
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