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TRAI paves way for cheaper calls
New Delhi, March 28, 2008
The Telecom Regulatory Authority of India (TRAI) on
Thursday has decided to completely wipe off access deficit
charge (ADC) component on domestic calls by April 01 – a move
that could further slash the rates of not only STD but ISD
call charges as well.
Access Deficit Charge (ADC) is a levy paid by private players
to BSNL to carry out rural operations amounting to Rs 5000 cr.
BSNL was getting the ADC till about two years ago from private
players to compensate the PSU to take services in rural areas,
where private companies were reluctant to go.
The ADC has two parts. First is 0.75 percent of adjusted gross
revenue (AGR) that service providers pay to BSNL and second,
Re 1 per minute on international incoming calls paid to the
PSU by international long distance service providers.
The regulatory body has issued the ninth amendment to the
interconnection usage charges (IUC) regulation that deals,
among other things, with the ADC payable by private operators.
Through the amendment, Trai has decided to phase out ADC as a
percentage of AGR from April 1, 2008, making all domestic
calls free from the incidence of ADC from that date.
The component on the international incoming calls would be
payable at a reduced rate of 50 paise only for the period from
April 1 to September 30, 2008, after which this component of
ADC would also be phased out.
The Cellular Operators Association of India has welcomed the
unprecedented move by Trai, as private players had been urging
the removal of ADC completely since last year. COAI said that
the reduction in ADC would not have much impact on government
or operators, but would largely benefit rural customers.
The bigwigs among telecom operators have also welcomed the
move.
“The competition would benefit customers alone as they will
have better options and better services to choose from”, a
spokesman for Bharti Airtel said.
Trai has also announced the reduction on ADC on international
calls to 50 paise from Re 1 at present. And added that the
revised call rates would be announced next week.
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