Mahanagar Telephone Nigam Ltd has decided to offer alternate tariff packages to its subscribers of basic telecom services in Delhi and Mumbai, a move that may bring much-needed relief to the landline users.

"We are working out alternate packages and will be approaching telecom regulator TRAI soon," MTNL chairman and managing director, Narinder Sharma told PTI.

Sharma said that the alternate tariff packages were aimed at offering value additions and increase the usage for MTNL's subscribers, in an era of aggressive competition from the private players.

The alternate packages will be offered besides the standard tariff package announced by TRAI last month which has increased the monthly rental in the two metros to Rs 280 from existing Rs 250 while the free calls had been curtailed to 30 from 60 at present.

TRAI's new tariffs would come into effect from April 1. TRAI has also increased the call charges to Rs 1.20 for two-minute pulse rate from three minutes at present.

Another state-owned corporation Bharat Sanchar Nigam Ltd has already indicated that it is working out alternate tariff packages and will file them with the regulator in a month.

Declining to comment on the structure of the alternate packages, Sharma said MTNL would adhere to the standard tariff announced by TRAI.

TRAI's tariff order gives flexibility of offering alternate tariff packages, by the operators.

As per the tariff order in rural areas, there would be no change in the monthly rental and would remain unchanged at Rs 70 and Rs 120 depending upon the capacity of the  telephone exchange.

In semi-urban areas with exchange capacity of 30,000 to 99,999 lines, the rental would go up to Rs 200 from existing level of Rs 180.

In long distance calls, for distance between 0 to 50 kms, calls would be treated as local calls while for distance above 50 kms, the operators would be free to decide the tariff subject to a ceiling of Rs 8.40 per minute.

Even for international long distance calls, operators would have the freedom to determine the tariffs.