The Hindu Business Line : TRAI likely to base ADC on revenue share model

TELECOM tariffs are set to go down further with the Telecom Regulatory Authority of India (TRAI) likely to bring in an access deficit regime based on the percentage of the revenues earned by the operators instead of the current system where it is loaded on telephone call charges.

The move is in line with the demands raised by private operators.

TRAI had acknowledged the need to move towards a revenue share regime for collecting the access deficit charge (ADC), but had not specified when the existing system would be replaced.

TRAI officials now say the new regime could be brought in this year itself, along with the ongoing process of reviewing the ADC regime.

ADC is a levy imposed by TRAI on every call made by a private operator's subscriber, which is then passed on to the state-owned Bharat Sanchar Nigam Ltd for fulfilling the Government's targets of rural telephony and for offering subsidised local call charges on fixed telephones.

The larger impact of the levy is on private cellular operators whose subscribers pay between 30 paise and 50 paise a minute depending on the distance.

Cellular operators have been fiercely opposing the existing system on the grounds that the levy favoured BSNL, which was also competing in the same market.

BSNL is not in favour of any proposal to move to a revenue share as it fears the ADC kitty of Rs 5,000 crore per annum may shrink.

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