BSNL challenges TRAI on ADC cut
BSNL challenges TRAI on ADC cut
ADC is paid by private telecom operators to BSNL for meeting the cost of unprofitable operations in rural areas.

New Delhi: Enraged over Telecom Regulatory Authority of India’s (TRAI) decision to cut a levy paid by private operators to the public sector company for its rural operations, state-run Bharat Sanchar Nigam Ltd (BSNL) on Saturday filed an appeal in Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against the sector regulator.

BSNL has approached the telecom tribunal TDSAT against sector regulator TRAI’s revised norms on Access Deficit Charge (ADC).

ADC is a levy paid by private telecom operators to BSNL for meeting the cost of unprofitable operations in rural areas.

TRAI had on March 21 announced a 37 per cent reduction in ADC for 2007-08 to Rs 2,000 crore from Rs 3,200 crore earlier. The new rates were to be effective from April 1.

The ADC on percentage revenue share basis of the telecom operators has also been reduced by 50 per cent.

The per minute ADC cut on outgoing calls has made ISD calls cheaper by upto 80 paise per minute.

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