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Trai defers decision on access charge

December 16, 2004 17:01 IST

Telecom regulator TRAI has postponed the announcement of reduction in Access Deficit Charge in view of strong opposition from the incumbent operator Bharat Sanchar Nigam Ltd.

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

"In the present exercise, the total amount going to BSNL as ADC is not being reduced. But since the number of mobile subscribers has gone up to 47 million, the regulator has the space to play around without reducing the total intake of the incumbent and the fixed line operator," he said.

"We are in favour of cutting ADC, on a per minute basis, and not the total amount of ADC," Baijal said.

He said no regulator can take any representations lightly from the incumbent (BSNL) as it is 60 per cent of our network, including that of MTNL. So it is necessary to listen and understand the views of the incumbent.

ADC is a levy on the private telecom operators, which goes to BSNL for undertaking rural telephony services.

Baijal said in a regulatory process, the regulator has to take into account all kinds of views and here the operator has opposed so TRAI has to listen to them and balance its action.



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