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End to ADC regime

In a move that will lead to cheaper calls, TRAI has decided to scrap the Access Deficit Charge (ADC) from April. ADC is the charge levied (0.75 per cent of revenues) on all telecom companies to support BSNL’s fixed line services in rural India.

     Print Edition: April 20, 2008

In a move that will lead to cheaper calls, TRAI has decided to scrap the Access Deficit Charge (ADC) from April. ADC is the charge levied (0.75 per cent of revenues) on all telecom companies to support BSNL’s fixed line services in rural India.

The phasing out of ADC is expected to result in saving of about Rs 700 crore for the industry. This is good news for subscribers as the telecom companies have promised, as mandated by TRAI, to pass on the benefits to end-users.

As compensation to BSNL, TRAI has recommended to the government that a subsidy be paid to it from the Universal Obligation Fund (all telcos contribute to the fund for improving communication facilities in rural India).

— Rishi Joshi

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