Trai may cut access deficit charges again

Long distance cellular tariffs may decline.

The Telecom Regulatory Authority of India on Thursday released a fresh consultation paper to review the existing access deficit charge and interconnection usage charges, a move that is likely to reduce the long distance cellular tariffs.

Cellular operators have said by issuing a fresh consultation paper in just two months of the new regime, the regulator has positioned itself to address a slew of contentious issues and announce its recommendations in about six months' time.

Even though the dust is yet to settle on the claims of the two PSUs Bharat Sanchar Nigam Ltd and Mahanagar Nigam Telephone Ltd, that they would suffer losses of Rs 1,200-crore and Rs 450-crore, respectively, the regulator has invited responses from all stockholders on the "admissibility and extent of ADC".

The paper has sought suggestions on whether operators can shift to a regime where ADC is levied as a percentage of their adjusted gross revenue.

Even under a revenue-share pattern, the paper explores the possibility of variable slabs for long distance and international long-distance calls and fixed monthly charges on urban lines.

The regulator has also asked operators to suggest whether ADC should be calculated only on the basis of rural fixed lines and whether it be admissible for companies other than BSNL.

The paper has sought the operators' views on not funding or charging ADC for other fixed service providers. Regarding the ADC calculations, Trai has sought comments on the importance of factors such as urban or rural locality, and wire-line and wireless access.

The regulator has also called for suggestions on whether ADC should be worked out on the basis of data from the most efficient operator.

It has also asked stakeholders to propose a reasonable period by which the ADC regime can be made a part of the Universal Service Obligation fund.

Trai has suggested major changes in the present interconnection usage charges (carriage and termination charge) such as operators being allowed to negotiate termination charges with international long-distance operators, different termination charges for domestic and international calls, and mobile and fixed line calls. At present, the termination and carriage charges are fixed by Trai.

While most operators refused to comment, BSNL said it will write to Trai as further reduction in ADC would adversely affect its rural roll-out plans.

"Our view has been clear, the more the cuts, the more our operations will suffer. We will take up the issues with Trai," a BSNL executive said.