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BSNL lobbies for ADC

State-owned telecom firm Bharat Sanchar Nigam Limited (BSNL) is unhappy that it is being forced to give up its Access Deficit Charge (ADC) handout from this year. ADC was a levy paid by private players to BSNL for providing services in rural India.

     Print Edition: June 1, 2008

State-owned telecom firm Bharat Sanchar Nigam Limited (BSNL) is unhappy that it is being forced to give up its Access Deficit Charge (ADC) handout from this year. ADC was a levy paid by private players to BSNL for providing services in rural India.

 Rooting for ADC

  • BSNL wants ADC regime to continue

  • Takes the matter to TDSAT

  • Argues it still requires support for rural operations
BSNL received Rs 2,000 crore in 2007-08 as ADC to run loss-making landline operations in rural areas.

It has now dragged the Telecom Regulatory Authority of India (TRAI) to the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

Its contention is that it still provides 98 per cent of rural landline connections and hence requires support.

However, with private operators like Airtel and Reliance Communications also getting aggressive in rural areas, BSNL’s arguments may not hold water.

Kushan Mitra

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