According to MTNL chairman and managing director S Rajagopalan, since it has its own end-to-end capability needed for providing the Internet service, MTNL will be able to effectively slash rates, including the initial deposit for first 500 hours.

MTNL is actively considering a package under which subscribers might not be required to pay the local call charges per three minutes while surfing the Net. Rajagopalan said the consultation process to study international practices was on in this regard.

MTNL will also apply for necessary permissions to become a cable television service operator in Delhi and Mumbai, Rajagopalan told a press conference in the capital. Through its own cable service network, MTNL is keen to provide a plethora of services throughits own cable TV network, keeping an eye on convergence of technologies.

Interestingly, Rajagopalan feels that voice over Net, presently banned by the ISP policy, cannot be prevented for long as convergence is setting in.

To be called Bharat Online, MTNL's service will focus heavily on advertising on the Net for revenue generation. Website development and content upgradation will thus play a major role in the bottomline of Bharat Online. MTNL will also concentrate on localisation of content.

It will also offer the use of the two gateways it will install to other Internet service providers on a commercial basis.

The services in the two cities are expected to be launched on January 26. However, Rajagopalan indicated that launch could even be preponed to December 31.

It has ordered for supply of modems and other networking equipment from Digital and Cisco at an initial investment of Rs 5 crore. The upgradation of present exchanges will be undertaken soon so that these are able to cope up with highInternet traffic.