The Hindu Business Line : Access deficit charge review: DoT asks TRAI to consult Govt

IN an unprecedented move, the Department of Telecom (DoT) has asked the Telecom Regulatory Authority of India (TRAI) to share its views on the issue of Access Deficit Charge (ADC) with the Government before taking any decision.

Fixing ADC so far has been under the purview of the telecom regulator and the intervention by DoT on the matter could be an indication of it being made a policy issue.

TRAI is currently working on revising the deficit charges and has conducted open house discussions with the industry. ADC is a levy imposed by the telecom regulator to fund unviable telephones in rural India.

The issue has raised considerable controversy within the industry over the last two years, since more than 95 per cent of the fund collected from private operators is passed on to the state-owned Bharat Sanchar Nigam Ltd for its rural obligations. The ADC kitty at present is Rs 5,000 crore.

Private operators have objected to the deficit charge on grounds that BSNL may be using the fund for subsidising its cellular business. The telecom regulator had indicated bringing down the total ADC fund from the present level and also a change in the way it was being collected.

At present, ADC is levied on each telephone call on a per minute basis. As part of a review exercise, TRAI was looking at imposing ADC as a percentage share of the total revenues earned by the operators.

A decrease in the total ADC collected may have an impact on BSNL's roll out plans. The Communications Ministry has gone on record expressing its reservation against lowering the amount accruing to BSNL.

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