Trai announces ADC rate cut
The amended regulations will be effective from April 1, 2007 till March 31, 2008.
NEW DELHI: Trai today notified amended regulations on Access Deficit Charges (ADC) and decided to lower ADC in line with the determination made on 23rd February 2006. The amended regulations shall be effective from April 1, 2007 till March 31, 2008. Trai mainly relied on higher growth in the incoming international calls which is estimated to contribute Rs 1400 crores.
Here are salient features:
The total amount of ADC for 2007-08 is reduced to approximately Rs 2000 crores from existing level of Rs 3200 crores.
Per minute ADC on outgoing international long distance calls reduced to zero from existing level of Rs 0.80 per minute i.e. complete removal of per minute ADC burden on domestic consumers in outgoing international long distance calls.
Per minute ADC on incoming international long distance calls reduced to Re 1.00 per minute from existing Rs 1.60 per minute i.e. reduction of around 38%.
Major relief to domestic telecom sector by reduction of ADC on percentage revenue share and removal of per minute ADC on international outgoing calls.
No ADC charge on revenue of access providers generated from rural wireline subscribers.
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