TRAI for final phase out of ADC

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New Delhi, Mar 27 (UNI) The telecom regulator TRAI today recommended the final phase out of Access Deficit Charge (ADC), a levy being paid by the private telecom companies to state-own BSNL to offset its losses for providing subsidised services in rural areas.

''These steps are expected to address issues like promoting competition, removing market distortions, minimising grey market in international calls and providing comprehensive benefit to all consumers,'' TRAI said in a statement.

The move would ensure positive gains to consumers once the ADC is removed from the domestic sector.

The ADC as it exists today has two parts. One, the service providers pay 0.75 per cent of their Adjusted Gross Revenue(AGR) to BSNL and second, International Long Distance Service Providers pay Re one per minute on international incoming calls to BSNL.

Through the instant amendment the Authority has decided to phase out ADC as a percentage of AGR from April 1 this year.

The component on the international incoming calls would be payable at a reduced rate of Rs 0.50 for the period from April 1 to September 30 after this component of ADC would also stand phased out.

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