Home > Business > PTI > Report
BSNL may lose Rs 900 cr on TRAI move
August 27, 2004 17:50 IST
Telecom Regulatory Authority said on Friday that it is planning to cut access deficit charge for incoming international calls to Rs 2 a minute from the prevailing Rs 4.25 per minute.
The proposal, if implemented, will heavily dent the earnings of public sector telecom monolith Bharat Sanchar Nigam Ltd, as it is likely to take a hit of Rs 900 crore (Rs 9 billion).
To recoup the revenue loss, BSNL may consider hiking tariff for rural subscribers, where it still has a virtual monopoly.
BSNL's fixed line rentals and call rates in the rural and semi-urban areas are still ruling below the Trai prescribed tariffs.
The proposed reduction in ADC in incoming ISD calls would benefit global carriers like AT&T, Sprint, MCI, British Telecom and Teleglobe among others.The move will prompt foreign telecom carriers to reduce the ISD call tariffs in their countries at the cost of Indian operators like BSNL by paying lower ADC.