Financial Daily from THE HINDU group of publications
Tuesday, Mar 14, 2006
Financial Daily from THE HINDU group of publications Tuesday, Mar 14, 2006 |
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Regulatory Bodies & Rulings Info-Tech - Telecommunications Cell cos to pay ADC for rural lines also Thomas K. Thomas
The move comes as blow to private cellular operators who are looking to sops for rolling out their network in rural areas.
New Delhi , March 13 The Telecom Regulatory Authority of India (TRAI) has clarified that the revenues earned by the cellular operators from offering services in rural areas will not be exempted while computing Access Deficit Charges. Such exemptions will be allowed only for wire-line telephone connections. The TRAI clarification comes after the private cellular operators protested that the state-owned Bharat Sanchar Nigam Ltd was charging ADC on rural connections. TRAI said that while issuing The Telecommunication Interconnection Usage Charges (Sixth Amendment) Regulation dated February 23, 2006, it was observed that scope of the ADC has to be limited to fixed wire-line only. "Therefore, while calculating the percentage of AGR, the revenue generated from the rural fixed wire-line subscribers has only been deducted." The move comes as blow to private cellular operators who are now looking to roll out their network into rural areas and hoping to get some incentive for the same. Earlier, TRAI in its recommendation on growth of telecom services in rural India dated October 3, 2005 had suggested that cellular mobile operators and unified access service licensees should be provided support from the Universal Service Obligation Fund for providing and sharing infrastructure in rural areas. Revenue from fixed wireless rural subscribers is also not to be excluded from AGR for calculation of ADC in terms of percentage of annual revenues.
Related Stories: More Stories on : Regulatory Bodies & Rulings | Telecommunications
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