Telenor has inked a long-term bandwidth leasing pact with Tata Teleservices Limited (TTSL). This will enable it to launch its own national long distance (NLD) network.

Prior to this, the company depended on the NLD networks of Vodafone, Tata Communications and Bharat Sanchar Nigam Limited (BSNL) for carrying its STD traffic. This meant that the company was paying high carriage and termination fees.

According to company executives, the NLD network will help Uninor compete in a sustainable manner in India’s telecom sector. Telenor plans to lease capacity from TTSL for this facility, rather than build its own network. The company hopes to save at least 30 per cent annually in costs by migrating its STD traffic to its own NLD network.