Trai chief says ADC will be cut

Telecom Regulatory Authority of India (Trai) Chairman Pradip Baijal today said the access deficit charge (ADC) paid by private telecom operators would be reduced.

"We will reduce ADC. We are submitting recommendations next week," he said at a conference organised by Ficci.

ADC is a payment made by private telecom operators to Bharat Sanchar Nigam Ltd (BSNL) as compensation for providing subsidised below-cost tariffs in backward areas.

At present, private players pay Rs 5,000 crore annually as ADC.

The move comes in response to the longstanding demand of private players for completely doing away with the ADC regime.

They allege that BSNL is using access ADC benefits to kill competition in the market.

However, Communications and Information Technology Minister Dayanidhi Maran is not in favour of revising the ADC charges at present, and has said the present regime should continue for the full term of five years.

The Trai chief also added that government was finalising a spectrum policy of which the 3G services would be an integral part. The policy was expected to bring in an automated spectrum management system.

Baijal said the policy on 3G (an advanced mobile communications technology) had to be evolved with the utmost caution and both operators and the regulator would have to ensure that prices continue to fall.

At the same time, flexibility should be built with respect to spectrum allocation and making it affordable for carriers to create a sustainable business.

"The policies will have to be dictated by standards laid down by the International Telecommunications Union and the availability of equipment in those ranges," he said.

He was confident of 3G services growing rapidly with private operators opening more and more mobile towers in the interiors of the country.

Baijal also said the government was working on expanding and deepening rural connectivity in view of the tremendous demand for broadband in rural areas.