The Hindu Business Line : All ADC cut gains will go to users: Bharti

The Telecom Regulatory Authority of India (TRAI) has announced major changes in the ADC, which could push down tariffs considerably. Bharti TeleVentures' Joint Managing Director, Mr Akhil Gupta, ahs welcomed the move and maintained that the cuts will be passed on to the customers.

He also said that as a result of this, his company's margins would become neutral. Excerpts from an exclusive interview to CNBC-TV18:

Will you pass down everything that you have got on the ADC cut?

Yes. It's a very welcome step. It's something that was awaited for some time. It's a step in the right direction both in terms of significant cuts on the outgoing NLD and ILD calls. There is a very clear sunset clause, which has been put in that. This will end by 2008-09.

Will you pass all of it down to subscribers in which case rates will come down propor- tionately?

Absolutely. Whatever has been given here, without a doubt, will be passed on to our customers.

This is our commitment for a long time. Whatever keeps coming, not only this one but also anything that comes on the licence, will straightaway be passed on to the consumer.

Have you been able to quantify how much of a cut will it be, given the changes on both STD and ILD rates?

I hope BSNL is going to stick to that and not revise anything upward.

Did you do any sensitivity analysis of how things move post- ADC cut?

We do that for a living because we watch the elasticity of demand, vis-à-vis the cuts in the rates all the time.

On NLD, I can safely say that there will be a big rise in the traffic.

There has been some talk you have done a deal with Vodafone and SingTel for stake transfer between the two. Any element of truth in that?

Nothing at all.

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