Mobile STD tariffs likely to go down | business | Hindustan Times
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Mobile STD tariffs likely to go down

The new ADC regime is ready but will only be announced after Dept of Telecom gets a go-ahead from the PMO, which is expected this month.

business Updated: Jan 09, 2006 18:06 IST

About 7.5 crore mobile users can look forward to a major cut in their STD bills this month, as the government is likely soon to approve collection of a fee (Access Deficit Charge) from telecom operators based on revenue-share mode instead of a fixed amount.

The revenue-share percentage is likely to be less for national long distance calls (STD) compared to international long distance calls (ISD), which would allow operators to cut STD tariffs.

The new ADC regime is ready but will only be announced after Department of Telecom gets a go-ahead from the Prime Ministers' Office which is expected this month. Telecom regulator TRAI will announce the revenue-share based ADC rates.

Highly placed sources said the entire amount of ADC will be kept at the same level of about Rs 5,000 crore and the current ADC accrued from ILD calls standing at Rs 2,000 crore would be retained at the same level too.

This rules out any scope for reduction on ILD rates. But STD calls would be expected to fall as the revenue share will be lower on such calls.

The current mobile STD rates by private players are Rs 2.65 a minute while telecom PSUs are offering maximum at Rs 2.40 a minute.

The new ADC regime will move from a fixed charge of 30 paise/minute for STD calls and Rs 2.50/minute and Rs 3.25 for ISD calls (for outgoing and incoming calls respectively) to a revenue share percentage for all local and international calls.