Financial Daily from THE HINDU group of publications
Tuesday, Dec 14, 2004
Financial Daily from THE HINDU group of publications Tuesday, Dec 14, 2004 |
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Info-Tech
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Telecommunications Cell operators oppose levy cut on ILD calls Our Bureau
New Delhi , Dec. 13 PRIVATE cellular operators on Monday said they supported the stance taken by BSNL against reducing access deficit charges on international long distance calls. In a letter written to the Telecom Regulatory Authority of India (TRAI), cellular operators said reducing ADC would not discourage grey market activities as the telecom regulator has claimed. TRAI had earlier said it was considering a 40 per cent reduction on ADC on long distance calls from Rs 4.25 a minute to about Rs 2 a minute. "This measure will not discourage grey market activities; it will only slightly reduce the size of the incentive for operators indulging in grey market activities. For example, for an operation of 100 million incoming ILD minutes per month, reducing the ADC from the present Rs 4.25 per minute to say Rs 2.5 per minute will merely reduce the incentive or arbitrage opportunity from Rs 42.5 crore to Rs 25 crore per month, which is still a huge incentive for illegal routing grey market traffic," said the letter from the Cellular Operator's Association of India (COAI). BSNL had also given a similar representation to the telecom regulator last week on the ground that lowering deficit charges will not benefit Indian subscribers.
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