This article was first published 17 years ago

BSNL challenges Trai order

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March 31, 2007 13:59 IST

State-run BSNL on Saturday approached telecom tribunal TDSAT against sector regulator Trai's decision to cut a levy paid by private operators to the public sector company for its rural operations.

Bharat Sanchar Nigam Ltd filed an appeal in Telecom Disputes Settlement and Appellate Tribunal against the regulator's revised norms on Access Deficit Charge.

The Telecom Regulatory Authority of India had on March 21 announced a 37 per cent reduction in ADC for 2007-08 to Rs 2,000 crore (Rs 20 billion) from Rs 3,200 crore (Rs 32 billion) earlier.

The new rates were to be effective from April 1.

The levy is paid by private telecom operators to BSNL for meeting the cost of unprofitable operations in rural areas.

Taking up BSNL's petition seeking a stay on Trai's decision, a TDSAT bench headed by chairman Justice Arun Kumar issued at notice to the regulatory agency. TDSAT later posted the matter for hearing on April 12.

BSNL had earlier said it would be hit hard by the reduction in the levy. The company is already contesting Trai's decision to cut ADC for 2006-07 in February last year. As per Trai's roadmap, ADC will be abolished in 2008-09.

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