Tariffs of STD (domestic) and ISD (international) calls will come down with the Telecom Regulatory Authority of India on Thursday reducing the access deficit charge, a levy paid by private operators to Bharat Sanchar Nigam Ltd.
TRAI has reduced the ADC component on the ISD calls by over 41 per cent to Rs 2.50 a minute from the existing rate of Rs 4.25 and by 62 per cent on STD calls beyond 50 km to 30 paise from the existing 80 paise.
Major telecom players like Bharti, Hutch and Reliance have said they would pass on the full benefits to their subscribers.
The new regime would not upset the total ADC amount going to Bharat Sanchar Nigam Ltd at Rs 5,000 crore annually (Rs 50 billion), TRAI Chairman Pradip Baijal told reporters after announcing the new regime.
Rates of local calls, whether cell-to-cell, cell-to-fixed line or fixed-line-to-cell, are unlikely to undergo any change as the structure for ADC component for these has remained unchanged.
TRAI also said fixed line operators like Bharti, Reliance and Tatas (other than BSNL) would retain ADC only on their outgoing calls. ADC on all other calls will be provided to BSNL, it added.
"This will keep the ADC burden low, while also maintaining the overall ADC amount to BSNL and other fixed line operators unchanged," TRAI said in a statement.
Meanwhile, Sunil Mittal, Chairman of Bharti Tele-Ventures, announced that the entire benefit of the ADC cut will be passed on to customers.
The regulator has not acceded to the demand of private operators that ADC be collected on the basis of revenue of the operators and not on the basis of calls.
The new regime would come into effect from February 1, TRAI said, adding that the Authority would undertake fresh review of the ADC regime within three to six months of implementation of the current rates.
Commenting on the new regime, Sunil Mittal, Chairman of Bharti Group, said: "Benefits of ADC rate cut would be passed on 100 per cent to the customers. A major reduction has been made in the ADC on outgoing international calls, so the benefit there will also be passed on to the subscribers."
Bharat Sanchar Nigam Ltd, which had been opposing any cut in ADC, seemed satisfied with the methodology adopted by TRAI saying it may not 'upset' the ADC amount to the PSU.
