The Hindu Business Line : TRAI to seek views on access deficit charges

Kolkata, Jan. 20The Telecom Regulatory Authority of India will float a consultation paper on Monday (January 21), inviting opinion on whether the “sunset clause” on the Access Deficit Charge (ADC) should be invoked by March 31 and whether the ADC should “transit and get merged into the Universal Services Obligation (USO) Fund”.

The consultation paper will also invite suggestions on whether the savings accruing to telecom companies on abolition of the ADC should be passed on to the customer, said Mr Nripendra Misra, Chairman of TRAI.

ADC is a levy paid by telecom operators to Bharat Sanchar Nigam Ltd to help subsidise the latter’s rural operations and fulfil its social obligations.

The USO Fund — which is fixed at five per cent of the adjusted gross revenue of all telecom service providers — is meant to promote growth of all telecom services, including wireless broadband, in rural areas. BSNL will get an ADC of Rs 2,200 crore in the current fiscal.

Addressing members of the Merchants’ Chamber of Commerce in Kolkata on Saturday, Mr Misra said Rs 14,000 crore had been collected under the USO Fund of which Rs 5,600 crore had been utilised so far.

Mr Misra said TRAI was concerned about “poor” tele-density in rural areas and hoped that the savings accruing to companies with the abolition of ADC is invested in creating telecommunications infrastructure in rural areas.

Companies can also pass on the benefit to rural customers by reducing connection and initial administration charges. “We hope this subvention mechanism will address the issue of rural tele-density,” he said.

3G spectrum

With regard to spectrum allocation for 3G services, Mr Mishra said only about 30 MHz remained to be allotted.

“After the available spectrum is allotted, no other band will be given by the command and control method of the government. In the future, whatever band is allotted will be through auctions,” he said.

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