Tribunal to hear BSNL cases against ADC cut

Telecom Disputes Settlement and Appellate Tribunal has clubbed the two cases filed by Bharat Sanchar Nigam Limited challenging Telecom Regulatory Authority of India's decision to reduce the levy collected from private operators to fund its rural operations for 2006-07 and 2007-08.

The TDSAT accepted the application filed by BSNL on Trai's decision to cut access deficit charge for 2007-08 and directed the regulator to file a detailed reply within two weeks.

As directed by tribunal on March 31, Trai has filed a short reply on the stay application filed by BSNL to stop the implementation of the new ADC regime.

Meanwhile, mobile operators' associations Cellular Operator Association of India and Association of Unified Telecom Service Providers of India have also put an application mentioning the names of their members

wanting to be impleaded in this case. The application was in response to a direction from TDSAT chairman Justice Arun Kumar.

Private telecom operators have been paying ADC to BSNL since 2003 to offset the cost incurred by the public sector firm for operations in rural areas. On March 21, Trai 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.

BSNL, which would be adversely hit with this decision, had later challenged the reduction in TDSAT. The PSU had earlier challenged TRAI's order of March 22, 2006 to reduce the ADC paid to it.

During proceedings in TDSAT on Thursday, Additional Solicitor General Gopal Subramanium, appearing for BSNL, sought an early hearing.

He also said while reducing the ADC, TRAI has fully ignored the data provided by BSNL.