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TRAI explores ADC from SMS, Internet — Long distance tariffs may fall further

Our Bureau

New Delhi , March 17

THE Telecom Regulatory Authority of India (TRAI) has hinted at collecting access deficit charges (ADC) from non-voice applications such as short messaging (SMS), multi-media messaging (MMS), broadband service and Internet service providers.

If the proposal comes through, phone call tariffs may come down further because at present the burden of the deficit charges is entirely on voice calls, collected on a per minute basis.

In a fresh consultation paper issued on reviewing the ADC regime, TRAI has said that a formula could be evolved whereby the deficit charge is collected both on a per minute basis when it comes to voice calls and as a percentage of revenue generated by the operators annually on value-added services.

This may, however, jack up the tariffs of value-added services if the operators decide to pass on the hit on their revenues to the consumers.

TRAI has also sought the industry's view on imposing deficit charges on wireless-in-local-loop (fixed wireless) telephones on the grounds that wireless systems have almost nil deficit component. This move could increase the tariffs for fixed wireless phones, which currently does not attract any ADC. TRAI has pointed out that some of the WLL (fixed) operators were not adhering to the regulation.

Recently, TRAI had hauled up operators such as Tata Teleservices for offering mobile-like services using WLL platform and in the process avoiding ADC payments.

TRAI has sought the industry's opinion on introducing a flat rate of carriage charges on long distance calls. Currently, the rate varies between 20 paise a minute and Rs 1.10 per minute, depending on the distance of the calls. TRAI has said that since the ADC is the same for all distances, the next logical step towards "death of distance" would be to have a flat rate of carriage charges.

TRAI has also indicated in the paper that the termination charges, which is at 30 paise a minute at present, could come down owing to increased subscriber base and higher minutes of usage. Both these proposals could have downward effect on long distance tariffs.

The telecom regulator has also hinted at keeping out all non-BSNL operators from getting any benefit from the levy on grounds that none of the operators were offering telephones in economically unviable areas. TRAI said that non-BSNL operators, who operate in lucrative areas, might rake in profits from the ADC that they receive. The present regime allows non-BSNL operators to receive deficit charges for outgoing calls.

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