Trai starts ADC review

In less than two months after the introduction of the new access deficit charge (ADC) regime, Trai today came out with another consultation paper to review the existing regime.

The existing levy, which came into effect from February 1, 2005, had resulted in lowering of long distance tariffs from mobile phones. The tariffs could fall further once the new regime comes into effect.

Trai has now sought traffic data details from various operators and their views on various contentious issues including further reduction in ADC in view of increased traffic.

The authority has also sought views on issues including justification of ADC on fixed wireless lines and admissibility of ADC for non-BSNL fixed line operators, and ADC as a percentage of revenue (a long standing demand of cellular operators).

Interconnection usage charges (carriage and termination issues) including those for incoming international calls, and whether to have differential rates for carriage and termination would also figure in the next round of review.

Trai would also study the implications of increasing disbursement of the universal service obligation (USO) fund.

Immediately after the announcement of the last ADC rates, BSNL had claimed that it would take a financial hit of about Rs 1,200 crore annually, and MTNL had projected a loss of Rs 450 crore. MTNL had even challenged the existing ADC regime before TDSAT, but had not got any relief.