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Mobile tariffs set to dip from Feb
Thursday, 06 January 2005, 20:30 IST
NEW DELHI: India's telecom regulator Thursday slashed access deficit charges (ADC) payable by private telecom operators, enabling mobile call tariffs to fall from Feb 1 but potentially triggering higher landline rates.
The Telecom Regulatory Authority of India (TRAI) announced a new ADC regime to bring about lower tariffs and boost tele-density and the growth of subscribers.
The new regime does away with the distance slab within the country and has imposed a fixed rate of only 30 paise ADC for all types of calls across the nation. The ADC on incoming international calls has been reduced from 
4.25 per minute to 3.25 and outgoing calls to 2.50 a minute.
Responding to the move, private telecom operator Bharti said it would pass on the full benefits of the ADC cut to its subscribers.
"Benefits of the ADC rate cut will be passed on 100 percent to the customers," Bharti chairman Sunil Mittal told reporters.
However, the move could potentially trigger higher landline rates charged by fixed operators.
The ADC is a fee that cellular operators pay fixed telephone operators for providing connections in non-lucrative markets. Private operators had urged the TRAI to reduce ADC, saying that would enable them bring down mobile telephone charges.
According to TRAI, the new regime - spurred by the exceptionally large increase in minutes that funded the ADC - would result in lower prices for domestic consumers.
But the revenue share would be introduced later when its adverse effect on local call tariff and rental could be avoided.
Several stakeholders, including Bharat Sanchar Nigam Limited (BSNL), had opposed the implementation of the revenue share ADC regime on the ground that it will increase rentals and local call charges.
The disbursement of ADC has been altered to ensure that the amount received is unchanged, while reducing the burden on customers.
The BSNL, which had opposed the reduction of ADC, will be the only fixed line operator to receive ADC on all incoming international calls and outgoing calls from mobile or wireless on local loop (WLL).
The TRAI said it would examine the implementation of the new rates after three to six months.
The BSNL had earlier threatened to hike the monthly rental to 360 in rural and urban areas if the ADC were to be slashed.
The TRAI found that the number of minutes available for funding ADC had increased immensely due to more than anticipated subscriber growth, estimated to touch 230 percent by September 2005.
The new ADC regime, however, keeps the total amount of ADC funding unchanged, as also the method of collection of ADC.
The TRAI said the new regime would spur a competitive market response resulting in a reduction in call charges.
It would also simplify the ADC regime for domestic long distance calls, by applying the same (low) ADC charge to all these calls. This would help with the ongoing convergence and death of distance.
Source: IANS
4.25 per minute to 3.25 and outgoing calls to 2.50 a minute.
Responding to the move, private telecom operator Bharti said it would pass on the full benefits of the ADC cut to its subscribers.
"Benefits of the ADC rate cut will be passed on 100 percent to the customers," Bharti chairman Sunil Mittal told reporters.
However, the move could potentially trigger higher landline rates charged by fixed operators.
The ADC is a fee that cellular operators pay fixed telephone operators for providing connections in non-lucrative markets. Private operators had urged the TRAI to reduce ADC, saying that would enable them bring down mobile telephone charges.
According to TRAI, the new regime - spurred by the exceptionally large increase in minutes that funded the ADC - would result in lower prices for domestic consumers.
But the revenue share would be introduced later when its adverse effect on local call tariff and rental could be avoided.
Several stakeholders, including Bharat Sanchar Nigam Limited (BSNL), had opposed the implementation of the revenue share ADC regime on the ground that it will increase rentals and local call charges.
The disbursement of ADC has been altered to ensure that the amount received is unchanged, while reducing the burden on customers.
The BSNL, which had opposed the reduction of ADC, will be the only fixed line operator to receive ADC on all incoming international calls and outgoing calls from mobile or wireless on local loop (WLL).
The TRAI said it would examine the implementation of the new rates after three to six months.
The BSNL had earlier threatened to hike the monthly rental to 360 in rural and urban areas if the ADC were to be slashed.
The TRAI found that the number of minutes available for funding ADC had increased immensely due to more than anticipated subscriber growth, estimated to touch 230 percent by September 2005.
The new ADC regime, however, keeps the total amount of ADC funding unchanged, as also the method of collection of ADC.
The TRAI said the new regime would spur a competitive market response resulting in a reduction in call charges.
It would also simplify the ADC regime for domestic long distance calls, by applying the same (low) ADC charge to all these calls. This would help with the ongoing convergence and death of distance.
Source: IANS