Business Today

TRAI to scrap ADC

Finally, TRAI has decided to do away with the Access Deficit Charge (ADC), a levy paid by private players to BSNL for providing services in the rural areas.

     Print Edition: January 27, 2008

Finally, TRAI has decided to do away with the Access Deficit Charge (ADC), a levy paid by private players to BSNL for providing services in the rural areas.

 Ringing in changes

  • Access Deficit Charges to be scrapped
  • STD rates to fall
  • Regulator hopes the move will eradicate the grey market
It will be scrapped from April 1, 2008. With this, STD call rates are likely to tumble further. BSNL garnered about Rs 2,000 crore as ADC in 2006-07.

TRAI now feels that further support to BSNL’s social obligations can come from the universal service obligation fund (domestic telecom companies contribute 5 per cent of revenues to the fund).

Says Romal Shetty, Executive Director, KPMG India: “It’s a good development. ADC has been resented by telecom companies and has also been blamed for the emergence of a grey market in international incoming calls.”

— Kapil Bajaj

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