Telecom tariffs to fall as TRAI slashes ADC on private players

Mumbai: Telecom tariffs are expected to fall significantly with the regulator, TRAI, announcing a reduction of more than 37 per cent in Access Deficit Charge (ADC), the levy that private players pay to state-owned BSNL for providing services in rural areas.

The reduction will come into effect on April 1.

"The total amount of levy for the financial year 2007-08 is reduced to approximately Rs2,000 crore from existing level of Rs3,200 crore," Telecom Regulatory Authority of India said in a statement.

"The Authority expects that the reduction in ADC amount resulting from today's order would be fully passed on to the consumers by the service providers," TRAI said.

International long distance (ISD) calls are likely to become cheaper as the 80 paise levy charged on such calls now has been completely removed.

All private operators pay ADC to Bharat Sanchar Nigam Ltd for carrying out social obligations like providing services to rural and other unremunerative areas.