ADC cut costs BSNL Rs 1,254 cr

Bharat Sanchar Nigam Limited (BSNL) today said that the reduction in Access Deficit Charges would lead to an annual loss of Rs 1,254 crore to the company. The loss could affect its roll-out plans for rural areas.

"While Trai (Telecom Regulatory Authority of India) has provided for ADC of Rs 5,000 crore per annum, BSNL expects to spend about Rs 11,200 crore annually on present lines in the rural areas," a BSNL release said.

Effective from February 1, the ADC on inter-circle calls are to be slashed by 62.5 per cent to 30 paise for domestic long-distance calls beyond 200 km.

For international long-distance calls, the charges would come down by 41.18 per cent on outgoing calls and 23.53 per cent on incoming calls. From the existing flat rate of Rs 4.25, the new deficit charges are Rs 2.50 for outgoing and Rs 3.25 for incoming.

The reduced revenues from ADC may force BSNL to review some of the projects planned for achieving the ambitious rural tele-density targets.

BSNL was the only telecom service provider, which was making any attempt to get the rural areas connected, it said.

Private operators had shed all responsibility in this regard, specially since introduction of Unified Access Service License.

BSNL not only had to make additional capital investment but also had to face a loss in revenue. BSNL provided rural telephony at highly subsidised rate of Rs 50 per month against the average monthly rental of Rs 360.

While the private players have hailed the move, indicating that it would lead to reduction in tariffs, BSNL has protested against it.