Now, you can call overseas at Re 1

Come Friday, MTNL broadband customers in Delhi and Mumbai will be able to make an ISD call to any part of the world for as low as Re 1 per minute through their fixed line phones.

The state-owned PSU will become the first telco in the country to offer internet telephony or Voice over Internet Protocol (VoIP) where subscribers can enjoy ultra cheap ISD calls without even having a computer at home. For those who choose to access MTNL’s internet telephony through their personal computers (a PC to PC call), the tariffs are likely to be as low as 10 paise per minute.

If you do not have a PC at home, but want to make cheap ISD calls, just subscribe to MTNL’s broadband connection (which comes with monthly rentals starting at Rs 199) and also buy an Analog Telephone Adaptor (ADA) from the PSU for Rs 1,500.

The adaptor converts the fixed line phone into an IP (internet protocol) device so that the user does not have to use a computer and carry it over the broadband internet line.

Globally, this kind of service, which is fixed to one location, is generally offered by broadband Internet providers such as cable companies and telephone companies as a cheaper flat rate equivalent to the traditional landline service. The state-owned telco has tied up with Aksh Optifibre to offer the VoIP service.

MTNL’s move to enter this segment is set to change the market dynamics and force other operators to follow suit. So far, no telco had ventured into internet telephony as they feared this would eat into their revenues from traditional mobile and fixed line calls.

This may also eat into the business models of Internet service providers (ISP) in these metros. ISPs currently offer internet telephony at rates of 50 paise per minute and upwards, but face a severe disadvantage as they can offer this service only from a PC in India to a landline, mobile or a PC abroad. Sources said, BSNL may also launch internet telephony through fixed line instruments in all major cities, though no time frame was given.