The Hindu Business Line : Pvt telcos suspend threat to stop access deficit charge payments

CONSUMERS fearing disruption in telecom services from September 10 can now relax, as private operators have softened their stance on stopping access deficit charges (ADC) payments to BSNL.

The operators have decided to put a hold to their threat until the ongoing discussions with the telecom regulator conclude.

Industry sources said that the threat to discontinue ADC payments was called off by the operators after the Telecom Regulatory Authority of India (TRAI), in a meeting on Friday, assured of taking a fresh look at the controversial issue.

Mr T.V. Ramachandran, Director-General, Cellular Operators Association of India (COAI), said: "We will not be carrying out the threat to stop ADC payments from September 10 since the TRAI is looking into the issue. We have also said that we do not have any problems with BSNL reducing tariffs. They can reduce it even further. But do not ask us to pay ADC on the grounds that BSNL is losing money elsewhere."

The Association of Unified Telecom Service Providers of India (AUSPI) said that while it had objected to the concept of ADC, there was no plan to stop payments, as it would be in violation of regulatory norms.

The face-off between private telecom operators and BSNL had stepped up with the former refusing to pay the charges from September 10 onwards.

In such an event, BSNL would have pulled the plug off the mobile operators - 30 million mobile subscribers would have been cut off from 40 million BSNL fixed-line users spread across the country and vice-versa.

While private operators had been objecting to paying such a charge, the recent tariff cuts by BSNL have added fuel to the controversy with private operators claiming that the company was misusing the monetary support to "kill competition".

ADC is a levy imposed by the TRAI on all telecom service providers for subsidising rural telephones.

Since BSNL provides the largest number of rural phones, significant part of the fund collected goes to its kitty.

Last week, BSNL announced a 33 per cent cut in STD rates and a 60 per cent reduction in mobile tariffs, making it the cheapest operator in the country.

The new rates will come into effect from September 10.

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