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MTNL defers cellular services launch to Feb 7

The Mahanagar Telephone Nigam Ltd has deferred the launch of its much-awaited cellular services Dolphin in Delhi to February 7 in order to conduct network optimisation tests, a top company official said.

"The minister for communication Ram Vilas Paswan will inaugurate the service on February 7 and on February 8 we shall start giving connections. Meanwhile, the network optimisation will continue in various parts of the national capital," MTNL chairman and managing director Narendra Sharma said.

MTNL had last month touched off a virtual tariff war among the cellular operators by announcing up to 50 per cent lower tariffs than being charged by the existing two operators, AirTel and Essar.

MTNL had announced Rs 1.50 for an incoming call of one minute duration, Rs 2.70 for an outgoing call and had pegged monthly rental at Rs 400.

Sharma said that the corporation would offer new connections in the capital from February 8 onwards.

Asked whether MTNL was planning to offer different tariff packages to customers, Sharma ruled out the possibility saying "our current package is best suited under the existing conditions."

MTNL had started booking of the connection from January 15 and according to corporation sources more than 10,000 applications have been registered.

Consumer interest in MTNL mobile tapers off

When the Mahanagar Telephone Nigam Limited, on January 12 of this year, announced its mobile phone tariff --Rs 2.70 for outgoing and Rs 160 for incoming calls --the Indian cellular industry was all set for a tariff war. And happen it did, as both Airtel and Essar, mobile service providers in Delhi announced steep reduction in their tariff rates.

In tune with the rest of the players both the firms were charging an average airtime of Rs 4 per minute. But after MTNL's announcement, both the service providers slashed prices. While incoming call rate was fixed at Rs 1.60,Airtel's outgoing call will now cost Rs 2.85 per minute and that of Essar's is Rs 2 80 per minute. Both the private operators have matched MTNL's monthly rental of Rs 400 "penny for penny."

Quite predictably there was a mad rush for MTNL's application forms and a total of 60,649 were handed out. But the hype surrounding MTNL's cellular services seems to be tapering off if the number of registrations is any indication. The cumulative number of registrations at the end of January 29, 2001 stands at only 9,300.

''With another 500 registrations on Tuesday, the total as we begin our service today would be 9,800,'' S Sunderesan, director finance of MTNL said.

MTNL chairman and managing director Narinder Sharma said that the MTNL was expecting a subscriber base of around 25,000 by the end of the first quarter of this financial year.

Interestingly at the time of the tariff announcement by MTNL, both Essar and Airtel had insisted that the consumers will not move so easily to MTNL, as the perception about their quality of service and customer care was not so high.

''After the announcements by Essar and Airtel of comparable tariff slash most of the subscribers probably feel it is best to wait and watch as MTNL launches its service. Anyway, the cellular subscriber base has been growing in past couple of months,'' sources at Airtel said.

(Agencies)

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