Demand for new telephone connections has come down from 1,74,562 in 1997-98 to 1,30,172 last year showing a decrease of more than 25 per cent, chief general manager of MTNL (Delhi), CV Rajan, told reporters in New Delhi on Thursday.

The company has fixed a capital outlay of Rs 1,027 crore for its Delhi operations during 1999-2000 as against Rs 800 crore last year showing a jump of over 25 per cent, Rajan said, adding MTNL would focus on modernisation, enhanced value-added services and customer services during the year.

The company has a target of providing 2.4 lakh new connections during the current financial year and 50,000 connections would be provided under wireless in the local loop system in the Capital.