Access charge mulled as revenue share

Regulator exploring ways to accelerate subscriber growth outside metros.

The Telecom Regulatory Authority of India (Trai) has proposed that access deficit charges can be collected as a share of the revenue of telecom firms. The regulator is expected to submit its recommendations to the government in a month.

"Percentage revenue is an attractive possibility and we are examining it. We will review access deficit charges in the course of time. But, more importantly, problems in collecting access deficit charges have to be sorted. The operators have to decide on the issue and this sometimes results in disputes," DPS Seth, member, TRAI said on the sidelines on an open house session here.

He said Trai would examine the timing and methodology to be adopted. Seth said access deficit charges were earlier at the level of Rs 13,000 crore, accounting for 30 per cent of industry's revenue. Consequently, the charges were reduced to Rs 5,000 crore and the share in revenue worked out to 9-10 per cent.

"Now that the revenue is higher and the minutes for which ADC is to be paid has also gone up, we will have to work out if the share is reduced," Seth said.

He said the regulator was also exploring ways to accelerate subscriber growth outside metro cities.

"Operators have not been able to tap areas outside the metros. The focus will be to push for more competition and availability of better infrastructure facilities," he said.

He, however, declined to comment on specific measures that would be adopted for ramping up the mobile subscriber base, but said infrastructure sharing could be an option to optimise growth.

"Currently the two million or less subscribers are added to the mobile base per month. This should be three million. We are examining various hurdles and discussing the issue," he said.

The Cellular Operators Association of India (COAI) has demanded that fixed and wireless boradband service should also be covered under the unified licence.

"There should be a scheme of class licence. The registration charge should be a one-time charge covering the cost of processing and issuing of licences," COAI Director General TV Ramachandran said.

According to COAI, annual licence fee should be prescribed at six per cent of the adjusted gross revenue "" five per cent towards universal service and one per cent as administrative cost "" subject to a minimum fixed levy to deter non-serious players.

COAI has said the benefit of two per cent reduction in revenue share granted to the first and second cellular licensee should not be disturbed even under the new regime.

SC Khanna of the Association of Basic Telecom Operators said revenue share licence fee should be six per cent of adjusted gross revenue to cover the contribution to universal service fund of five per cent and administrative charges of one per cent.