Date:22/03/2007 URL: http://www.thehindubusinessline.com/2007/03/22/stories/2007032205020400.htm

Back Telcos disappointed with revised rates

Our Bureau

New Delhi March 21 Telecom operators, both private and state-owned, have expressed disappointment with the revised access deficit charges (ADC) announced by the Telecom Regulatory Authority of India.

Mr T.V. Ramachandran, Director General, Cellular Operators Association of India (COAI), said it was unfortunate that despite the overwhelming industry view that domestic consumer should be spared the burden of ADC, the regulation continued to prescribe a levy of 0.75 per cent of adjusted gross revenue on domestic telecom services. "It is also disappointing that the regulator did not maintain the present reduction trend in ADC and has, in the present regulation, reduced ADC by to Rs 2,050 crore as opposed to Rs 1,600 crore which would have been in line with the reduction trend," he said.

COAI said the continuation of an ADC subsidy seemed anomalous in view of the recent aggressive bidding for the Universal Services Obligation tender which had witnessed zero and even negative subsidy bids.

BSNL said TRAI should have waited for a final decision on the issue by Telecom Dispute Settlement Appellate Tribunal. BSNL had filed a petition with the tribunal against the reduction of overall charges. BSNL's share has come down from Rs 3,000 crore in 2006-07 to Rs 2,000 crore in the revised regime.

Mr S.C. Khanna, Secretary-General, AUSPI, said that it was unfair the private operators were being asked to pay money to BSNL.