BSNL fears ‘One India’ means less income

27 Jul 2005

Indian state-owned telco Bharat Sanchar Nigam Ltd (BSNL) has estimated that its annual turnover will fall by INR12 billion (USD277 million) if the government implements the ‘One India’ plan. The plan, proposed by Communications and IT Minister Dayanidhi Maran, will introduce a single tariff for all domestic calls in the country regardless of the distance. BSNL predicts the new tariff structure will hit its long-distance business hard, particularly given that it is its largest source of revenue. In a letter to the Department of Communications this week, the telco suggested the idea of increasing local call rates to counterbalance the long-distance revenue shortfall.