Trai for revenue-based access deficit charges

Cellular and fixed-line tariffs are set to drop in the near future with the Telecom Regulatory Authority of India (Trai) proposing a revenue-sharing formula for the collection of access deficit charges (ADC) against the present norm of charging fixed amounts.

Cellular industry sources said the move by the regulator could lead to a fall in cellular tariffs, especially in cell-to-fixed line calls. The ADC is paid to Bharat Sanchar Nigam Ltd (BSNL) by all private operators for carrying out its rural telephony obligations.

At present, ADC is calculated on the basis of each call, leading to confusion over calculations of the ADC.

In a consultation paper released today, the regulator proposed an ADC revenue of 2.2 per cent of the Adjusted Gross Revenue (AGR) for the areas where BSNL's fixed line rental is Rs 200 per month and 5.3 per cent of the AGR for the areas with monthly rental of Rs 156.

Trai has argued that in the proposed ADC regime based on revenue share, the extent of data required would be much lower compared to the present regime of calculation of ADC based on varying charges per minute.

Trai also said based on the assumption about the growth of the subscriber base for fixed and mobile services, capital investment and average revenue per user including those from access and long distance services, it would be possible to calculate the percentage revenue share that would fund ADC.