Date:28/03/2008 URL: http://www.thehindu.com/2008/03/28/stories/2008032859901200.htm

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TRAI reduces ADC on private operators

Special Correspondent

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) on Thursday announced a reduction in the Access Deficit Charge (ADC) levied on private operators to compensate Bharat Sanchar Nigam Limited (BSNL) for carrying out rural operations, which were considered unprofitable.

TRAI also announced a reduction in ADC on international calls to 50 paise from Re. 1 despite BSNL advocating continuation of this levy. It was getting an ADC of Rs. 5,000 crore annually till about two years ago from private players to compensate the PSU for providing services in rural areas, where private companies were reluctant to go.

Since BSNL has the largest number of rural subscribers, more than 90 per cent of the fund collected was passed on to the state-owned company.

The ADC has two parts. The first is 0.75 per cent of adjusted gross revenue (AGR) that service providers pay to BSNL and the second, Re. 1 per minute on international incoming calls paid to the PSU by international long distance service providers.