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DoT suggests fixing the access deficit charge at 3 per cent of the gross revenue

February 15, 2006
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DoT has reportedly suggested fixing the access deficit charge (ADC) at 3 per cent of the gross revenue of telecom operators to provide a level playing field to all. The Telecom Regulatory Authority of India (TRAI) had sought DoT's suggestion to work out new ADC rates and is expected to announce them soon. BSNL receives about Rs 50 billion annually as ADC from private operators for its rural operations. With ADC at 3 per cent, the total quantum to BSNL may come down by Rs 12 billion from its current level and may affect the company's plans for rural expansion.

DoT has written to TRAI to put the new regime in place at the earliest. BSNL has said that the revenue share should be set at 7-8 per cent in order to sustain its rural obligations. Private operators on the other hand feel that revenue share should be 3-4 per cent of the total revenue in order to maintain a level playing field.

 
 
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