MTNL to 'protest' against new ADC

State-owned Mahanagar Telephone Nigam Ltd (MTNL) has claimed it would take a financial hit of Rs 4.5 bn annually due to the new rates of Access Deficit Charge (ADC) announced by TRAI and said it would "protest" against the new regime.

"ADC was available to MTNL since last two years and TRAI was convinced about this... On what basis now we have been denied this compensation?," said R S P Sinha, MTNL's Chairman and Managing Director, adding that "We will protest against the new regime."

Asked whether MTNL would approach the telecom tribunal (TDSAT) or TRAI, Sinha said, "We are still working out the numbers. One thing is certain that we shall protest against it to the TRAI."

Sources said that MTNL's revenue loss could go up to Rs 7 bn due to the new ADC rates.

Sinha declined to comment on it.

BSNL, another telecom PSU, has also claimed taking a revenue hit of Rs 1254 crore per annum and warned of various rural telephony projects getting derailed thereby upsetting the government's target of connecting the six lakh villages.

BSNL officials said that they were working on the next course of action and were in the process of seeking legal opinion on the matter.