The Hindu Business Line : TRAI to review access deficit charges again

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New Delhi, Jan. 21 The Telecom Regulatory Authority of India is all set to undertake another review of the controversial access deficit charges (ADC). Access charge is a levy that telephone subscribers in urban areas pay to subsidise cheaper phone services in rural areas.

Since Bharat Sanchar Nigam Ltd is undertaking most of the rural telephony, the money collected by private operators in the form of access deficit charges is passed on to the state-owned telecom company.

According to TRAI sources, the total quantum of money collected should come down further as the traffic volume has increased substantially. A decrease in ADC will result in overall reduction in telephone tariffs.

The telecom regulator had reduced the subsidy by 33 per cent the previous time it had conducted a review to Rs 3,335 crore for the year 2006-07 from Rs 5,340 crore. The reduction had enabled operators to lower STD rates to Re 1 per minute.

While private telecom operators are in favour of completely doing away with the subsidy, BSNL wants an increase in the amount collected. At present operators pay 1.5 per cent of their annual revenues as ADC.

As per TRAI's own roadmap, this ADC is to be merged with the Universal Services Obligation (USO) Fund for which operators contribute 5 per cent of their annual revenues. BSNL is, however, expected to oppose the move as it had done on previous occasion when it had filed a case in the telecom dispute settlement tribunal against TRAI.

BSNL operates 1.4-crore telephone lines in remote areas where lower tariffs have been fixed by TRAI. Private operators, on the other hand, point out that they are being asked to fund the rival state-owned telecom company's operations. They say that since there is no separation of BSNL's accounts, there is no certainty of whether the money is being used for providing rural telephony or fund its aggressive marketing plans.

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