Cell cos against cut in access deficit charge

Contrary to the assertion of the Telecom Regulatory Authority of India that the reduction in access deficit charge on incoming international calls would put a check on the grey market, Cellular Operators Association of India on Monday said it would merely reduce incentives for operators indulging in grey market activities.

"Lower ADC would only result in lower incentives for operators indulging in grey marketing of telecom traffic," the association said, adding that it (grey market) can be effectively tackled only by increasing the mobile termination charge received by cellular operators.

Access deficit charge is a cess paid by the private cellular firms to government owned BSNL-MTNL networks for accessing services rendered by BSNL/MTNL.

Recommending a higher MTC of at least Rs 1.75 per minute from the current level of just 30 paise, COAI said, "This will give enough incentives to cellular operators to put in place a proper monitoring system to identify grey traffic."

The introduction of higher termination charge on incoming international calls would result in a win-win situation for all as it will ensure full recovery of targeted ADC funds, check grey market traffic, and also ensure that BSNL gets full resources to achieve its social objectives, COAI chief T V Ramachandran said pn Monday.

"Mobile operators should get improved termination charges in line with the global practice, and the government would be able to realise its objectives of reaching targeted subscriber base within the defined time frame," he added.