Here's some more good news for Indian Internet subscribers. Clearly, Mahanagar Telephone Nigam Ltd, the public sector telephone services provider in Mumbai and New Delhi, wants to become a major player in its areas of operation, and has reduced its Internet subscription rates further to attract more subscribers. (Click here to see details of various options)

The latest rate chart from MTNL will make Internet much more affordable and popular in the new millennium. The new MTNL regime includes a 15 per cent across-the-board rate cut. But that's not all. The company has introduced two new offerings – an unlimited usage plan for public switched telephone network (or, in plain language, for ordinary lines) and a flat usage plan for ISDN connections.

According to MTNL general manager K.J. Chacko, the aim is to structure the rates to suit different budgets. He says MTNL wants to bring the benefits of Internet to every potential user. With the unlimited usage plan, which Mr Chacko hopes will be very popular, anyone can log in and start surfing without having to keep an eye on his or her watch.

The plan affords a person a one-month connection for a flat Rs 1,000, three months for Rs 2,500, six months for Rs 4,000 and one year for Rs 6,000. Two e-mail IDs with 4 MB memory and 2 MB of personal web space come free with the connection.

The flat usage plan for ISDN dial-up offers two options – 64 kbps for a validity period of six months at a rate of Rs 25 per hour and 128 kbps for a validity period of six months at Rs 30 per hour. Subscribers to this service will get two e-mail IDs with 4 MB memory space and 2 MB personal web space free with the connection.

Mr Chacko says that as MTNL is eyeing corporate users for the flat usage plan, it is stipulating a minimum subscription for 1,000 hours.

The registration can be now done online through a CD, which MTNL will provide. MTNL has also done away with registration charges, except in the case of normal ISDN dial-up connections, in which case a fee of Rs 500 will be charged.

Asked whether MTNL is undercutting other service providers, Mr Chacko said MTNL feels these rates are reasonable. It is for other service providers to review their rates, he said. He also said MTNL has informed the Telecom Regulatory Authority of India as required under telecom rules about the tariff revision. "We are required to inform Trai about the revision in rates five days prior to the actual date of implementation. We have done this. Under the rules, if there is no communication from Trai in these five days, we are free to implement the revised rates," he added.

The various options proposed by MTNL are: