Telecom Secy meets Baijal to expedite new levy rates

Telecom Secretary J S Sarma today met Trai Chairman Pradip Baijal to expedite the new levy rates, paid by private operators to BSNL for their rural operations.

Though not much details could be ascertained, the meeting between Trai chairman and DoT secretary is understood to have ironed out most of the glitches.

Baijal said after the meeting, "government is the biggest stakeholder in telecom and we are consulting it. We are trying to do it very fast."

Sarma declined to comment on the discussions.

The meeting which is the third in the last two weeks comes amid reports that DoT is understood to have suggested fixing access deficit charge, at three per cent of gross revenue of telecom operators to provide level playing field to all.

Earlier Trai had sought DoT's suggestion to work out new rates of ADC and this is expected this week. State-owned BSNL gets about Rs 5,000 crore annually as ADC from private telecom operators for rural operations.

With ADC proposed at three per cent, the total quantum to BSNL may come down by an additional Rs 1,200 crore from its current level and may affect corporation's plans for rural expansion, sources said.

DoT has been proposing ADC based on revenue share instead of the existing practice of per minute based, saying the revenue share model will provide level playing field.