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Friday, Apr 25, 2008
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Raja warns telecom firms

Sandeep Joshi

NEW DELHI: Union Minister for Communications and Information Technology A. Raja on Thursday said action would be taken against telecom operators who did not pass on the benefit of phasing out of access deficit charges (ADC) to consumers.

ADC being paid by private operators to the State-owned Bharat Sanchar Nigam Limited (BSNL) for providing subsidised tariffs to subscribers in rural areas had been phased out from domestic calls and would be enforced for international calls by September 2008. However, the operators had so far not reduced their tariffs, the Minister said in the Rajya Sabha when members complained that private telecom operators were indulging in profiteering.

“We are observing it very closely. We will review the situation within the next few months, and if we find that the benefits of levy cut have not been passed to consumers, we will take action against erring telecom firms,” Mr. Raja assured the Upper House.

The decision to phase out the ADC regime was taken on the recommendations of the Telecom Regulatory Authority of India (TRAI). It has benefited the operators by about Rs.1,000 crore annually, he said.

18,000 more towers planned

Mr. Raja said the loss of revenue to BSNL due to discontinuation of ADC would be compensated through the universal services obligation (USO) fund being used to improve telecommunication infrastructure in rural areas.

“We will be setting up 18,000 towers within the next two years that would give a boost to tele-density and broadband connectivity across the country, particularly in rural areas,” he added.

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