The Hindu Business Line : MTNL challenges new ADC regime

MAHANAGAR Telephone Nigam Ltd, on Thursday, filed an appeal with the Telecom Dispute Settlement Appellate Tribunal challenging the new Access Deficit Charge (ADC) regime announced by the telecom regulator.

The Telecom Regulatory Authority of India had stopped deficit charges for MTNL and private fixed line operators on incoming calls, which they have been getting since last two years.

According to MTNL officials, the move resulted in a loss of over Rs 400 crore annually to the State-owned company.

Meanwhile, the private fixed line operators under the Association of Unified Telecom Service Providers of India is holding a meeting on Friday to discuss the possibility of joining ranks with MTNL on the issue.

The other State-owned company Bharat Sanchar Nigam Ltd has already gone on record stating that the new regime would lead to a loss of Rs 1,250 crore for the company and has urged the Government for a review. This despite the fact that BSNL is the only company that would continue to get ADC on incoming calls as well.

The new regime comes into effect from February 1. The case comes up for hearing on January 24 with the Tribunal.

Access Deficit Charge is a levy imposed by TRAI on all calls to support fixed line telephones being provided in economically unviable areas.

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