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National Long Distance Services

NLD service was opened to the private sector w.e.f. 13 August 2000. Indian registered companies having a net worth of Rs.2.5 crore and paid up equity of Rs.2.5 crore are eligible to apply. The total foreign equity in the applicant company must not exceed 74 per cent at any time during the entire license period. Investment in the equity of the applicant company by an NRI/OCB/International funding agencies is counted towards its foreign equity. The entry fee of Rs.2.5 crore is to be submitted before signing the license agreement. There is no restriction on number of operators. An NLD operator can carry inter-circle traffic in the country. The license for NLDO is issued on non-exclusive basis, for a period of 20 years and is extendable by 10 years at one time. In addition to BSNL 18 more companies have signed license agreement for National Long Distance Service. The competition resulted in lowering of tariff.

Source: National Portal Content Management Team, Reviewed on: 10-01-2011