The Hindu Business Line : MTNL plea on ADC rejected — Lower mobile tariffs effective from today

THE new Access Deficit Charge will come into effect from February 1, with the Telecom Disputes Settlement Appellate Tribunal (TDSAT) refusing to grant a stay toMahanagar Telephone Nigam Ltd's (MTNL) petition challenging the new regime. MTNL had challenged the ADC regime on grounds that it resulted in a loss of Rs 550 crore a year.

The TDSAT decision would mean that mobile operators such as Airtel and Hutch would be able to implement lower tariffs from tomorrow. The operators had announced a reduction of 35 paise a minute for STD calls and Rs 1.75 a minute on ISD calls.

The TDSAT decision is a setback for MTNL since the new regime envisages no charges to the state-owned company. As per the policy made by the Telecom Regulatory Authority of India (TRAI), only Bharat Sanchar Nigam Ltd would get ADC payments on incoming calls. MTNL and other private operators used to get ADC charges until now. Last year, MTNL got Rs 400 crore by way of ADC. Private operators have also joined MTNL in challenging the new regime.

However, this only is an interim order and the TDSAT would hear the appeal from MTNL on February 24.

Meanwhile, the TRAI has filed an appeal in the Delhi High Court challenging TDSAT's jurisdiction over the issue. The Delhi High Court deferred the matter to next week. TRAI said that since the regulations were statutory in nature they could only be changed in Parliament and TDSAT, which was a creation of a statute, could not decide on such matters. Only the High Court or Supreme Court could be the deciding authority in this matter, TRAI said.

TDSAT,,however, ruled that it had prime facie jurisdiction on hearing appeals challenging regulations of TRAI.

MTNL's counsel Mr C.H. Sunderam said TRAI's move of denying MTNL the ADC from incoming international calls and limiting it to the outgoing calls from mobiles and WLL phones was based on the anticipated rise in outgoing traffic which would compensate for the loss.

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