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The Mahanagar Telephone Nigam used to be the government owned basic telephony monopoly in the densest telecommunications pockets of Bombay and New Delhi.

But all that changed when the basic telephony business and Internet services were opened for private sector participation.

Days ago Rediff analysed how MTNL has responded to the threat. It has simply fired a double-barrelled strategy: It would enter the ISP business and use its installed network muscle to offer cheaper Net access for its phone subscribers. The Net carrot could then be dangled for securing more telephone customers!

That's a tough poser for both the new phone companies and the ISPs. Only an anti-competitive appeal could skew the pitch for MTNL now.

Here its safety net seems to be the shiny new telephone services it has unwrapped today.

Beginning with bastions of Bombay and New Delhi, it has announced introduction of and 'intelligent network' that would ''provide communication solutions to businesses and the general public''.

MTNL Chairperson and Managing Director S Rajagopalan has promised that the new services, enabled by IN technology, would make communication much more flexible.

The services being offered are:

• free phone
• virtual card calling
• premium rate
• virtual private network
• accounts card calling
• televoting and
• universal access number

Free phone services allow people to make calls to a 'free phone number' for which the called party has agreed to pay the complete cost.

Virtual card calling services allow subscribers to make calls from any telephone to any destination - local, national or international - depending upon the card category. But the charges of these calls are charged to the account specified by the virtual card calling account.

Premium rate service could be leveraged by organisations wanting to sell their products through the telecom network. Here customers can dial a delegated telephone number to access a variety of information on services and products, including information on stock markets.

Virtual private network services utilise public networks for meeting the customised communication needs of corporations and service organisations with their own numbering plan among all their sites, much like a PABX network.

However, Rajgopalan said services like account card calling, televoting and universal numbers would be introduced only after some time.

He said MTNL has developed a new computerised system that integrates commercial and billing activities with the objective of creating a single-window system to look after the customer's needs.

This system takes care of all the billing related problems and covers online functions like the issue of supplementary bills, single bill generation, amendment and adjustment of bills, cancellation of bills and instalment across the counter.

Rajgopalan conceded that the majority of telephone lines in Delhi and Bombay are at present on copper. But MTNL is now introducing fibre and 'wireless in local loop'. These technologies would improve the quality and reliability of the access network, he assured.

He announced that MTNL would replace all telephone lines served by electromechanical exchanges by electronic exchanges by the end of December. In Delhi, two exchanges of 10,000 lines each are being replaced by digital exchanges today itself.

Once again, Rajgopalan promised that MTNL's Internet services would begin on January 26. Right now orders have been place with supplier of Internet access equipment and the systems should be in place by the end of December.

That's for MTNL.

• But a fire's burning under big chairs at VSNL too.

Earlier:

• We have run out of headlines!
  Finally. After several announcements, reports and headlines, the Net business has been thrown open to the private sector.
• VSNL attempts answer to the private ISPs poser
• TRAI to work out Internet tariff
• MTNL packs a double-barrel
  Phone muscle will help offer cheap Net access. And the Net carrot will reel in more telephone customers!
• TRAI releases response to telecom tariff proposal
• ISP aspirants allow a peek at their hand
• DoT backtracked on bank guarantee promise, charge ISPs

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