TRAI cuts Access Deficit Charge

Sandeep Joshi

Telephone tariffs to come down

·  New regime fromApril 1

·  International callsto be cheaper

NEW DELHI: In a move that could further reduce telecom tariffs, the Telecom Regulatory Authority of India (TRAI) on Wednesday announced a cut in the Access Deficit Charge (ADC) paid by private operators to state-owned Bharat Sanchar Nigam Limited (BSNL) for providing services in rural areas. The new regime will come into effect from April 1.

In a statement issued here, TRAI said the total amount of ADC for 2007-08 has been reduced to about Rs. 2,000 crore from the existing level of Rs. 3,200 crore. Similarly, per minute ADC on outgoing international long distance calls has been reduced to zero from the existing 80 paise, which means domestic subscribers will not have to pay per minute ADC on international calls. While finalising the new regime, TRAI mainly relied on higher growth in the incoming international calls.

TRAI has also cut per minute ADC on incoming international calls from Rs. 1.60 to Re. 1, a reduction of around 38 per cent, while ADC on percentage revenue share has been lowered to 0.75 per cent from the existing 1.50 per cent of adjusted gross revenue (AGR) of all service providers — access providers, national long distance operators and international long distance operators.

"This amounts to a reduction of 50 per cent of ADC on percentage revenue share basis,'' it added. TRAI has also decided not to permit levy of ADC on revenue of access providers generated from rural wireline subscribers.

The Cellular Operators Association of India of GSM operators was expecting the total ADC to come down to Rs. 1,600 crore, besides sparing domestic ILD customers the levy. The Executives of the Association of Unified Service Providers (AUSPI), which represents CDMA operators, has echoed similar views.

Cabinet likely to take up FDI in telecom

NEW DELHI: The Union Cabinet is likely to take up on Thursday a proposal to enhance the FDI limit in telecom to 74 per cent in an effort to come out with guidelines before the current deadline of April 2 for meeting the norms expires.

Source:-The Hindu: Business-22-03-2007