Taking a cue from the state-owned BSNL, Tata Teleservices (TTSL) on Wednesday cut long-distance rates by 47% from Rs 9 per minute to Rs 4.80 per minute for distances beyond 500 km.

But it left tariffs for other distance slabs untouched. The new rate will come into effect on March 7 and be valid through March 31, after which the new interconnect usage charge (IUC) regime comes into effect.

The rate of Rs 4.80 is almost on par with the rates offered by cellular players. Although the STD rate itself is lower at Rs 2.99 per minute, but along with airtime charges (of about Rs 1.50-2 per minute), the cost of a call works out to about Rs 4.5-5 per minute.

TTSL’s move follows a cut in tariffs by BSNL, the dominant landline player in the country, which itself was a reaction to rate cuts by cellular operators.

TTSL said that these rates will apply to all the three segments of TTSL customers including landline, mobile and fixed wireless subscribers. Earlier, TTSL customers paid Rs 9/min during peak hours and Rs 4.50/min during off-peak hours for calls beyond 500 kms. TTSL has operations in 6 circles including Delhi, Maharashtra, Gujarat, Karnataka, Tamil Nadu & AP. "The reduction in STD tariffs have been done in the best interest of our customers. Such a move will benefit close to half a million customers, spread across its 6 circles," said S Ramakrishnan, MD, TTSL. Tata Teleservices had earlier filed a new tariff structure with the Telecom Regulatory Authority of India.