Call Rates Set to Fall

TRAI has decided to phase out the access deficit charge (ADC) on domestic calls from April 1, 2008. The ADC waiver will adversely impact Bharat Sanchar Nigam Ltd’s (BSNL’s) rural…

TRAI has decided to phase out the access deficit charge (ADC) on domestic calls from April 1, 2008.

The ADC waiver will adversely impact Bharat Sanchar Nigam Ltd’s (BSNL’s) rural expansion, which gets more than 90 per cent of the fund. However, it has recommended that BSNL be paid Rs 2,000 crore from the Universal Service Obligation (USO) Fund for three years to compensate the company for its wireline obligations in rural India. [BS]

But, as per COAI, ADC constitutes of 0.75% of the total revenue, so the effect will be marginal.

This move will impact BSNL in a big way (even though they are compensated for the loss).

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