TRAI to scrap access deficit charges from April 1

By Sandeep Gurumurthi, CNBC-TV18

The telecom regulator has kept his word. Access Deficit Charges (ADC) which is a levy for subsidising BSNL's rural foray will soon be a thing of the past. Will the industry spread some of the cheer to consumers?

It’s one of the few issues that united an otherwise fractious industry. The need to phase out ADC or access deficit charges. A levy that is paid by operators to subsidise the rural roll out of state-owned BSNL. But thankfully for the industry the telecom regulator has stuck to his promise and so it will be goodbye to ADC from the April 1. And this is no April Fool's joke. ADC on international calls though has been cut by half, even though they will be phased out by end September.

Nripendra Misra, Chairman, TRAI, “The intent now is to ensure that adequate funds are made available for BSNL from the USO fund so that maintenance of rural infrastructure does not suffer.”

Even though the ADC phase out was already factored in by the industry. It’s still a big relief.  Currently operators pay 0.75% of their adjusted gross revenues as ADC. That amounts to about Rs 600 crores. All of which the industry says will be passed on to the customers. So a marginal cut in tariffs is very much in the offing.

TV Ramachandran, DG, COAI, said, “We will pass whatever benefits we get to consumer."

The regulator is hoping that operators will walk the talk. TRAI says this relief should provide enough headroom for operators to cut tariffs especially for long distance calls.