Govt says new ADC shouldn't hurt BSNL

Trai's new regime on ADC may see cut in both local & international calls.

The government today said the Telecom Regulatory Authority of India (Trai) should ensure that revenues of the Bharat Sanchar Nigam Ltd (BSNL) did not suffer while drafting the revised norms for access deficit charges (ADC).

Access deficit charges are paid by the private operators to BSNL as compensation for the telecom PSU's obligation towards spreading rural telephony.

"While recommending norms for ADC, Trai must ensure that revenues of BSNL are not hit," Minister for Information Technology and Communications Dayanidhi Maran said today. He added that efforts should be made to ensure that revenues of the Department of Technology (DoT) and BSNL were not hindered in any way.

Trai is reviewing the ADC regime and may come out with revised norms soon where the quantum on both local as well as international calls may be reduced. The telecom regulator was of the view that the higher rate of ADC was the root cause of grey traffic in the country.

Maran, however, did not agree. "I feel that just reducing the ADC is not going to stop the grey market traffic coming to India. In fact, the good work done by our vigilance department has already brought down the grey traffic to insignificant levels," he said.

He added that ideally the ADC regime should continue for its full term of five years. While formulating the original norms, Trai had said the charges would be reviewed after three years.

"I never had any objection to ADC being reduced or not. I have always said that we should not keep reviewing policies frequently," Maran said.

He said Trai will make recommendations on ADC, followed by the DoT.

The ADC has been the bone of contention between private operators, Trai and the government for a long time. Private operators had opposed ADC payment to BSNL, saying it was being used to subsidise BSNL's local calls.

The DoT and BSNL had maintained that the PSU needed it to take up unremunerative services in rural areas.

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New ADC regime

• Trai is reviewing the ADC regime and may come out with revised norms soon
• The quantum of ADC on both local as well as international calls may be reduced in the new regime
• Trai feels the higher rate of ADC is the root cause of grey traffic in the country