In 1998-99, the demand for new telephone connections was only 1,30,172 as against 1,74,562 in 1997-98 implying a slump of more than 25 per cent. "We have not been able to pinpoint the actual reasons for the fall in demand. It could be due to general economic slowdown in the country in last two years," chief general manager of MTNL (Delhi) CV Rajan told reporters today.

He, however, expressed optimism about recovery in demand in the current financial year and said the company had fixed a target of providing 2,40,000 direct exchange lines (DELS) in 1999-2000.

MTNL (Delhi) has fixed an outlay of Rs 1,027 crore for the current year as against about Rs 800 crore last year. The company will concentrate on four major areas of growth, modernisation, enhanced value added services and customer services, Rajan said.

He said that in most of the exchanges telephone was virtually ondemand as the waiting list was nil on March 31, 1999. The company has managed to replace all electromechanical exchanges with digital exchanges resulting in lower rate of faults in telephones.

During 1998-99, MTNL added the switching capacity to the tune of 1,39,848 lines while only 90,392 new telephone connections were provided.

MTNL is also planning to give 50,000 connection under the wireless in local loop (WILL) technology during 1999-2000.

In the enhanced value added services, MTNL started internet service in the month of February and so far the facility has been availed by more than 3,000 subscribers.

Rajan said the company was planning to expand the internet service in two phases to 15,000 and one lakh subscribers from the current capacity of 5000 each in Delhi and Mumbai.

For reducing the fault liability, MTNL (Delhi) has launched rehabilitation programme of outdoor plant under which optical fibre and wireless shall be used in place of copper cables which are prone to faults andthefts.