Delhi: The Telecom Regulatory Authority of India
will undertake another review of the controversial
access deficit charges (ADC).
decrease in ADC will result in overall reduction in
telecom regulator had reduced the subsidy by 33 per
cent the previous time it had conducted a review to
Rs3,335 crore for the year 2006-07 from Rs5,340 crore.
The reduction had enabled operators to lower STD rates
to Re1 per minute.
is a levy that telephone subscribers in urban areas
pay to subsidise cheaper phone services in rural areas.
According to TRAI sources, the total quantum of money
collected should come down further as the traffic
volume has increased substantially.
Bharat Sanchar Nigam Ltd is undertaking most of the
rural telephony, the money collected by private operators
in the form of access deficit charges is passed on
to the state-owned telecom company.
private telecom operators are in favour of completely
doing away with the subsidy, BSNL wants an increase
in the amount collected. At present operators pay
1.5 per cent of their annual revenues as ADC.
per TRAI's own roadmap, this ADC is to be merged with
the Universal Services Obligation (USO) Fund for which
5 per cent of their annual revenues. BSNL is, however,
expected to oppose the move as it had done on previous
occasion when it had filed a case in the telecom dispute
settlement tribunal against TRAI.