Phone call rates likely to drop

In a move that might further reduce call tariffs and serve as a major incentive to telecom operators, the government is likely to recommend that Bharat Sanchar Nigam Ltd must charge levy from private operators on revenue share instead of per call basis.

The department of telecom may announce a new regime under which the levy access deficit charge, paid by private operators to state owned BSNL to meet social obligations like rural telephony, would be calculated on the basis of revenue of a service provider, highly placed sources said.

Asked whether quantum of ADC going to BSNL would be retained at the current level of Rs 5,000 crore (Rs 50 billion), sources said details including percentage and quantum to BSNL have to be determined by the Telecom Regulatory Authority of India.

When contacted some leading telecom operators said, "This would be a major relief to the operators and a host of new services would become available to the subscribers."

Asked whether tariffs for mobile phones would also come down, the operator said this would depend upon the percentage as well as components of ADC.

By switching over to revenue share basis new services would be available to consumers without any fear of bypassing the ADC.

According to sources, ADC component on incoming ISD calls, which accounts for nearly Rs 2,000 crore (Rs 20 billion) of the total Rs 5,000 crore (Rs 50 billion) to BSNL would be a major issue to tackle.

Since the ADC of Rs 3.25 per minute on incoming ISD calls is being paid by overseas operators and if this is imposed on domestic operators in the new regime the service providers would be affected badly especially the ISD operators like Bharti, Reliance and VSNL, industry sources said.