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Cell tariffs will drop if ADC is cut

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December 20, 2004 15:21 IST

The cellular phone industry will be able to lower the tariffs if the access deficit charge is brought down, according to Sunil Mittal, the CMD of telecom major Bharti.

ADC is a levy paid by private operators to state-fun Bharat Sanchar Nigam Ltd for undertaking rural telephony services. The current size of ADC is Rs 5,000 crore (Rs 50 billion) a year.

"If ADC can be brought down, it is my belief that the tariffs can be brought down. So it is up to the government but it is my commitment on behalf of the industry that whenever ADC is brought down, the benefits will be passed on to the customers within the same evening," Mittal told newspersons on the sidelines of TiEcon event.

He said private sector is also playing its role in rural areas and "together with BSNL we are building networks."

While DoT has softened its stand on ADC reduction, BSNL has made a representation to TRAI against proposed ADC cut and in view of that the regulator had to postpone the announcement of reduction in ADC.

"Our decision on ADC (to cut) was almost made. But the incumbent (BSNL) has protested and given us a long representation and we are examining that representation. I think they will make another presentation and after that we will take the final decision," Pradip Baijal, the TRAI chairman, had said.

"We are in favour of cutting ADC, per minute ADC not the total amount of ADC, which will be cut in the next consultation, not in this consultation," Baijal had said.

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