NEW DELHI: State-run Bharat Sanchar Nigam Ltd. (BSNL) soon plans to reportedly bring a plan which will give neck and neck competition to Reliance Jio. BSNL chairman and managing director Anupam Shrivastava said that the was closely observing Jio's performance and the market.

Plans being considered by BSNL are -- lifetime free-voice-tariff plans from January 2017 at Rs 2-4 cheaper than Jio's offering. (Jio's entry price is Rs 149) Free voice calls to all BSNL users including 3G and 2G. Mobile customers with broadband can also avail this offer. BSNL users can use home broadband to route outgoing mobile calls through the landline network.

BSNL subsidy

Meantime, the Indian cabinet has approved a compensation of Rs.1,250 crore for the deficit incurred in operating rural landline connections installed before April 1, 2002. The subsidy support to BSNL will be paid from the Universal Service Obligation Fund (USOF). The USOF, since inception in 2002, has provided subsidy to BSNL for the rural wireline connections installed prior to April 2002. A total of Rs.8,692 crore has been extended as USOF subsidy support till date.