``The investment details are yet to be worked out,'' said MTNL CMD S Rajagopalan. Providing internet services in Mumbai and Delhi and setting up two gateways in both places alone is estimated to cost MTNL around Rs 100 crore.

The company's board which met in Mumbai on Thursday also approved a decision to implement Wireless Local Loop (WLL) technology in Delhi in 50,000 lines. This technology is already being used by private operators like Hughes Ispat Limited (HIL) who have started offering basic telecom services in Maharashtra. The cost of this technology works out to around $ 200 per line.

In Mumbai, MTNL has called for tendersand expects to complete WLL implementation by March next year, Rajagopalan said. "The exchanges are already connected by optic fibre... WLL technology will make even the access part (line from the exchange to the customer) reliable," he added.

Regarding internet tariff for MTNL subscribers, Rajagopalan said it may even consider offering it at less than half rate currently being charged by the Videsh Sanchar Nigam Limited (VSNL). At the time of getting the licence, MTNL had said it may not charge its internet subscribers for the phone units used to surf the net. This had led to speculation that MTNL was using this as strategy to build a huge clientele and keep its subscribers from private telcom operators.

However, Bharati Telecom, another basic telecom service provider, has since announced its plans to become an ISP. Hughes Ispat is also expected to follow suit. Raju Patel, CEO of HIL, said the company was still awaiting the ISP policy notification and would take a decision once the details were in place."We might also offer it at this rate," he said.

The policy guidelines allow ISPs the freedom to fix their own tariffs, subject to review by the Telecom Regulatory Authority of India (TRAI).Rajagopalan ruled any opposition from TRAI on this front although MTNL is a dominant provider of dial-up voice services.