Now MTNL has joined the war. It has left other far behind in beating down the price to below Re1. In the mobile category, MTNL has slashed tariffs by about 37 per cent to 58 per cent in the post-paid category and by 29 per cent to 57 per cent in the pre-paid segment.

MTNL has brought down its cellular tariffs to Rs0.80 per minute from Rs1.90 per minute for post-paid users within its own network and to Rs1.20 per minute from Rs1.90 per minute to other cellular networks.

The new tariffs for pre-paid users have been proposed at Rs0.90 paise a minute as against the existing rate of Rs2.10 per minute within its own network and to Rs1.50 to other networks from Rs2.10 per minute charged currently. Thus on a Rs324 prepaid card, users can get talk-time worth Rs240.

In the fixed line category, MTNL has increased the pulse duration for calls from fixed lines to mobiles to 90 seconds from the existing 60 seconds. At present, MTNL charges Rs1.20 per minute for calls from a fixed line to a mobile phone.

MTNL has also reduced STD tariffs for both fixed line and GSM networks to a flat rate of Rs2.40 per minute, irrespective of distance, which is an effective reduction of 50 per cent in the highest distance slab.

Monthly rentals will continue at Rs100. The scheme will benefit 4.37 lakh customers in Delhi and Mumbai. The new tariffs are applicable from October 2, 2004.

MTNL says its new tariffs are the cheapest in the industry, as it is not levying hidden costs like additional monthly subscription charges.

MTNL says the new network will have features of GPRS (General Packet Radio Service) for high-speed data transmission and subsequently made EDGE (Enhanced Data Rate for GSM Evolution) enabled. It will offer various value-added services like multi-media messaging, colour logos and polyphonic ring tones. According to MTNL it has a capacity of 2,25,000 GSM lines each in Delhi and Mumbai and is expanding its capacity by 4,00,000 lines each in the two metros. The new capacity will be commissioned on October 2.