The Hindu Business Line : TRAI to come out with consultation paper on fate of ADC

KOLKATA: Telecom regulator TRAI will next week initiate discussions on the fate of access deficit charge (ADC), a levy paid by private firms for subsidising rural telephony in the country.

"A consultation paper will be released on Monday where the issue of ADC would be discussed in three major points," Mr Nripendra Misra, Chairman, Telecom Regulatory Authority of India said here today.

The paper would discuss whether ADC be phased out from March this; can ADC fund be merged in Universal Service Obligation (USO) fund; and how can the ADC fund after closure be utilised for benefit of rural customers.

ADC is paid by private telecom operators to state-run BSNL that uses the fund for providing services in rural areas. Private firms had criticised the levy, saying it was discriminatory and was aimed at cross-subsidising BSNL.

Mr Misra said rural telephony rollout is critical but now private players are also taking active interest.

"One of the private operators told me that they would cover four lakh villages by March 2008," Mr Misra said. The TRAI will also explore whether the ADC fund can be used to reduce the initial administrative cost for a connection. - PTI

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