State-owned telecom service provider, MTNL, today launched its video calling service for subscribers in Delhi and Mumbai. The service will enable subscribers to engage in live video calling for Re 1 per minute. “We will start accepting applications for this service from April 1,” said AK Arora, executive director, MTNL.

For engaging in video calling, consumers will first have to subscribe to MTNL’s broadband service. They will then have to apply for video calling, which would cost them Rs 9,999 for the video phone. Subsequently, the service attracts a monthly rental of Rs 500, which includes 500 minutes of free video calling. Currently, MTNL has 2.3 lakh broadband subscribers in Mumbai and Delhi and is adding 400 new subscribers every day. There is a waiting list of 6,000 subscribers.

Aksh Optifibre, which provides IPTV and ISD over VoIP services for MTNL is providing the solution to the carrier. The company is sourcing the video phones from Grandstream Networks, an American company that has a manufacturing facility in Korea. “The subscriber has to pay Rs 9,999, which is the cost as well as the lifetime rental (30 months) for the video phone. If there is any problem in the phone, we will immediately replace the unit,” said Chetan Chaudhari, chief operating officer, Aksh Optifibre.

The company is also talking to other players to offer video calling services. “We are already talking to the top three private telecom players in the country to offer the service,” Chaudhari revealed. The company is also working on providing IPTV services with BSNL to other circles apart from Delhi and Mumbai, where it provides services with MTNL.