TRAI begins talks on ADC phaseout
TRAI launched a consultation process to do away with the access deficit charge levy from April 1, 2008A move that can lead to cheaper STD tariffs and up to 30% lower tariffs for incoming international calls.
By TNN |
NEW DELHI: Telecom regulator TRAI on Monday launched a consultation process to do away with the access deficit charge (ADC) levy from April 1, 2008, a move that can lead to cheaper STD tariffs and up to 30% lower tariffs for incoming international calls.
Since the launch of BSNL’s cellular services, all national and international calls in India have been subject to the ADC levy, which has been used to fund state-owned BSNL’s operations in rural India through the Universal Service Obligation Fund (USOF).
ET had first reported in December 2007 that cellular tariffs, especially STD call rates, would come down after the ADC phaseout from April 1, 2008. "When implemented (ADC phaseout), it will pave the way for lower telecom tariffs, higher growth specially in rural areas, reduction in grey market, removal of market aberrations caused by ADC," TRAI said.
BSNL’s non-viable fixed line business in rural areas will continue to be supported by the unutilised amount in USOF, TRAI said. Telecom regulator TRAI has been reducing the ADC commitment of telcos every year with the roadmap that it be made zero from 2008-09.
Since the launch of BSNL’s cellular services, all national and international calls in India have been subject to the ADC levy, which has been used to fund state-owned BSNL’s operations in rural India through the Universal Service Obligation Fund (USOF).
ET had first reported in December 2007 that cellular tariffs, especially STD call rates, would come down after the ADC phaseout from April 1, 2008. "When implemented (ADC phaseout), it will pave the way for lower telecom tariffs, higher growth specially in rural areas, reduction in grey market, removal of market aberrations caused by ADC," TRAI said.
BSNL’s non-viable fixed line business in rural areas will continue to be supported by the unutilised amount in USOF, TRAI said. Telecom regulator TRAI has been reducing the ADC commitment of telcos every year with the roadmap that it be made zero from 2008-09.
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