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Talk more now; STD rates slashed

There has been no change in mobile and fixed termination charges from the existing level of Rs 0.30 per minute.

india Updated: Feb 23, 2006 17:28 IST

Telecom regulator TRAI announced on Thursday a substantial cut in levy accrued to state-owned BSNL at Rs 3,200 crore from over Rs 5,000 crore and shifted to revenue share regime from per call basis.

As per a statement issued in New Delhi, TRAI fixed the levy (Access Deficit Charge) at 1.5 per cent of the adjusted gross revenue of private operators - a move that would bring down telecom tariffs drastically.

This would result in substantial cut in STD rates.

According to TRAI, ADC on international calls shall continue to be on per minute basis but at a reduced rate of Rs 1.60 per minute for incoming calls, translating into more than 50 per cent reduction and on outgoing ISD calls, the levy has been lowered to just 80 paise a minute reduced by over 65 per cent.

TRAI claimed that the decision to lower the ADC on ISD calls would in turn reduce arbitrage and hence grey market.

For calculating the Adjusted Gross Revenue of the operators, TRAI has decided to subtract revenue from rural subscribers in the gross revenue.

The new ADC regime would come into effect from March 1, 2006.

There has been no change in mobile and fixed termination charges from the existing level of Rs 0.30 per minute.

Of the total quantum, Rs 3,200 crore would go to BSNL lower by over 33 per cent from the existing over Rs 5,000 crore, TRAI said.

TRAI has reiterated that ADC would come down to zero by 2008-09 and keeping this in mind the ADC amount has been reduced by one-third of the existing sum.

TRAI has estimated the total revenue of the telecom operators at Rs 90,000 crore in 2006-07. "Migration to revenue share regime will not have any significant impact on rental and local call charges. Further there will not be any per minute ADC on domestic calls paving the way for reduction in these rates," it said.

First Published: Feb 23, 2006 14:48 IST