The Hindu : Business : TRAI set to cut ADC

Online edition of India's National Newspaper
Tuesday, Feb 21, 2006

Business

Business

TRAI set to cut ADC

International calls likely to become cheaper

NEW DELHI: International long distance (ISD) rates are likely to fall significantly with telecom regulator TRAI proposing a drastic cut in the levy paid by private operators to BSNL on both incoming and outgoing ISD calls.

The new regime is also likely to reduce the total quantum of the levy (Access Deficit Charge) to BSNL by over Rs. 1,900 crore annually, highly placed sources said after Monday's TRAI meeting on the new regime that is likely to be announced in day or two.

The ADC quantum payable to BSNL may come down to about Rs 3,200 crore annually from existing Rs 5,340 crore, they said.

While switching over to the revenue share regime from the existing per minute basis TRAI is understood to have proposed a revenue share of 1.99 per cent of the Adjusted Gross Revenue of the telecom operators.

Although the two telecom PSUs — MTNL and BSNL — have already announced STD calls at Re. 1 across the country the private operators are waiting for the new ADC regime to be announced by the TRAI. According to sources, TRAI is considering a drastic cut in ADC on international long distance calls (both incoming and outgoing).

The new ADC rates for ISD calls are proposed to be fixed at Rs. 1.50-2 per minute for an incoming ISD calls from the existing Rs. 3.25 while for the outgoing ISD calls, the new rates are proposed to be fixed at Rs. 0.50 a minute from existing Rs. 2.50. With this the recovery from ISD calls will come down to Rs. 1,442 crore from existing Rs. 2,109 crore. — PTI

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