The levy - amounting to 0.75 percent of a telecom company's revenue and Rs.1 per call for international services - was the result of the National Telecom Policy of 1999, that said access to telephones in rural areas was a national priority.

But finding no room for competition in rural areas, it was agreed that private players would pay the money towards their "access deficit" in these places so as to compensate the state-run company towards its social obligation.

The development invited positive reactions from the private telecom service providers, who said the savings on account of the removal of access deficit charges would be passed on to customers.

"As a leader in the telecom sector, we are committed to pass on the benefits of the relief to the customers primarily in the rural areas as desired by TRAI," said the Bharti group, the largest private telecom provider in the country.

"We welcome the move. On our part, we are committed to passing on the benefit to our customers in an equitable manner and will announce it shortly," a spokesman for Vodafone Essar said.