Phone call rates likely to come down

By Our Corporate Bureau | 06 Dec 2004

1

New Delhi: Indian phone call rates are scheduled to come down by a further 30-40 per cent with the Trai signaling that it would reduce the access deficit charge. Pradip Baijal, chairman, Telecom Regulatory Authority has said that the access deficit charge (ADC) paid by private telecom operators would be reduced.

Pradip Baijal told reporters, "I don't agree that tariffs cannot fall any further. I do believe that tariffs can fall by another 30-40 per cent if we give appropriate policy directions," he said. Baijal said Trai would soon announce a cut in the access deficit charge — the charge that private operators pay to state-run Bharat Sanchar Nigam Ltd.

ADC is a payment made by private telecom operators to BSNL for undertaking rural telephony. At present, the private players pay Rs5,000 crore per annum as ADC. Private telecom operators had earlier opposed the decision of the Telecom Regulatory Authority of India's to impose the access deficit charge.

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