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DoT softens stand on ADC levy

November 30, 2004 16:58 IST

Softening its stand on reduction in access deficit charge, a levy paid by private operators to BSNL for rural telephony, the department of telecom on Tuesday said the Telecom Regulatory Authority of India must ensure that by doing so the revenues of the telecom public sector undertakings do not suffer.

TRAI is reviewing the ADC regime and may come out with revised norms soon with reduced quantum on both local as well as international calls. TRAI is of the view that higher rate of ADC was the root cause of grey traffic in the country.

On the possibility of TRAI recommending reduction in ADC rates, Communication and IT Minister Dayanidhi Maran said "I have always maintained that ADC regime should continue its full term of five years. It was charted out with good intentions. Simultaneously I also feel that just reducing the ADC is not going to stop the grey market traffic which is coming to India."

It is not only reduction in ADC, which would stop grey traffic. The DoT, especially the vigilance wing has started playing a pro-active role and the results are there for everyone to see, the Minister said, adding "Grey traffic is almost insignificant now."

"We all should ensure that the revenue for DoT and BSNL are not hindered by reducing the ADC charges", he said.

On the difference between TRAI and DoT over ADC, Maran said "both of us are speaking the same language. The ADC regime should continue. I never had any objection to ADC being reduced or not. I have always said that we should not keep reviewing policies off and on."

He said TRAI would make recommendations on ADC, which will be followed by the DoT. The ADC has been a bone of contention between private operators, TRAI and government for a long time.

While private operators have opposed ADC payment to BSNL saying they are subsidising BSNL for its lower local calls, the DoT and BSNL had maintained that the PSU needs it to take up less remunerative services in rural areas.



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