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Access deficit charge: TRAI may issue show cause notice

Thomas K.Thomas

New Delhi, Nov.9

The Telecom Regulatory Authority of India may issue show cause notices to all the long distance telephone operators who have not been paying access deficit charges to Bharat Sanchar Nigam Ltd.

State owned BSNL had earlier sought TRAI’s intervention because long distance operators including BT, Sify, HCL Infinet and Tulip IT Services are allegedly evading payment of access deficit charges to the PSU.

BSNL had named 10 domestic long distance operators and three international long distance operators who have allegedly not paid the charges.

Senior TRAI officials said that they were looking into the matter and could soon issue show cause notices seeking explanation from these companies.

Companies’ stance

Some of these companies which have been named said that they had already settled the dues.

However, some of the domestic long distance operators who had taken the licence to offer only data connectivity to the enterprise segment through services such as virtual private network, said that they were not liable to pay ADC since they were not carrying retail calls on a per minute basis.

TRAI officials, however, said that all operators were required to pay ADC as a percentage of their annual revenues if not on a per minute basis.

ADC is expected to be phased out next year as the Government has decided to end the subsidy for rural telephone. Private operators are against paying ADC as they fear that BSNL could use the money collected from them to offer lower tariffs in urban areas.

More Stories on : Telecommunications | Rural Development

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