Bharat Sanchar Nigam Ltd has indicated that there will be a further reduction in international long distance tariffs by at least 20-30 per cent when the company launches its services in February 2004, Prithipal Singh, chairman and managing director of BSNL said.

"The tariffs are likely to go down by at least 20- 30 per cent once we enter the ILD business in February next year," Singh added.

Singh was speaking at the sidelines of the telecommunication and information technology international trade show and conference - Telecom India 2003, organised by India-Tech Foundation in Mumbai on Wednesday.

"We have brought down the price from Rs 15 for ILD to as low as Rs 7 and I feel there is still some cushion. I also expect our volumes to surge with the reduction in the ILD tariffs as the grey traffic will be reduced," he said.

On the talks with the Videsh Sanchar Nigam to share ILD infrastructure, Singh said, "BSNL is still in talks with VSNL to use the infrastructure for the ILD services. A conclusion is expected soon."

BSNL is in the process of introducing new tariffs for all its services - local, national and international long distance services by using the new interconnect usage charges.

The new tariffs for all its services are expected to be announced within the next two weeks, Singh added.

Singh also pointed out that the state-owned telecom service provider was finalising a voluntary retirement scheme for its employees.

Although he refused to rope in the number of employees targeted under VRS package, Singh said: "We are talking about offering packages. We also have large number of employees due for retirement."