Trai Abolishes Adc From 1st April On Domestic Calls

[kesav 127]

ADC on domestic calls abolished from 1.4.2008

ADC on international incoming calls reduced from Rs.1 to Rs.0.50 from 1.4.2008 and will eventually abolished from 1.10.1008

BSNL may receive Rs.2000 crore per annum from USOF as subsidy for sustaining wirelines installed before 1.4.2002 for a period of 3 years in the non-ADC regime.

TRAI calls 2008-09 as "the year for rural telecom access"

TRAI asked operators to come up with constructive proposals for rural consumers within week's time. If otherwise, TRAI will make pro-active measures which may hurt operators.

source :: http://www.trai.gov.in/trai/upload/PressRe...27mar08no29.pdf

Now the big questions?

Will operators pass on the benefit(abolition of ADC) to customers?

Will ILD operators make call from outside the country cheaper?

Are the operators ready to serve the rural areas before TRAI jumps into the ring with whip?

Can BSNL one day become philanthropist from being a pauper?

[Dj 25]

Few operators have already committed to pass on the benefit to the consumer... as far as i can see it would be a dog race again with almost everyone following and trying to outdo the other...

so this could bring on a new low for the local and std calling rates which is good... but IMHO where trai should put its foot down is in setting standards of quality service and customer satisfaction... there should be a yardstick for the operators to conform to like negligible call drops and faster call connect... transparent accounting and billing and a better cust care support.

the indian telecom industry being a behemoth that it is needs to enforce these checks sooner than later if it wants the big bucks to continue... it should choose to ride on better customer satisfaction with high arpus than just a larger customer base with lower arpus and a lot of cust heartburn... long way to go...

[jatin_the_great2003 0]

Guyz,

Today i hv also heard tat TRAI has passed the proposal to lower STD and ISD call rates...

Now tats wat we can call as "the year for rural telecom access"...

[@ksh@T 20]

it would be called if rules are followed and come to realisation

[Arun 795]

Buzz on lower mobile bills

March 27, 2008

The Telegraph

Local and domestic long distance mobile call tariffs may drop further, thanks to telecom regulator Trai’s decision to do away with a fee that private telecom operators pay to state-run BSNL.

Mobile companies plan to pass on the benefits of the move to subscribers. However, they are unwilling to specify the quantum of discount they intend to pass on.

Trai said access deficit charge (ADC) levied on domestic calls would be scrapped from April, while that on international calls would be initially halved to 50 paise per minute before phasing it out from October this year.

“The rule is outdated and it’s good it’s being phased out,” said Mahesh Uppal, a telecom analyst.

ADC is a type of tax paid by private telecom operators to the government for failing to keep their commitment to roll out telecom services in rural areas. The money is used by companies such as the state- run BSNL to connect villages.

“We need to nevertheless fund BSNL through the USO fund (set up specifically to create rural telecom network),” Uppal added.

At present, mobile service providers pay 0.75 per cent of their gross revenue for domestic calls as ADC, and Re 1 per minute on all international incoming calls.

Bharti Airtel welcomed the regulator's move and said it would pass on the benefits to its customers. The firm said it would announce the details within a week, after consulting the telecom regulator.

A Vodafone Essar spokesperson said, “We welcome the move. We are committed to passing on the benefit to our customers in an equitable manner and will announce it shortly.”

According to industry analysts, growing revenues, a rising subscriber base, emergence of wireless phone connections and a mobile penetration of nearly three times compared with fixed lines — ADC is levied on fixed-line calls too — has reduced the relevance of the subsidy.

BSNL, however, wanted the levy to stay as any change would affect its expansion plans in remote areas.

Trai has decided to recommend to the government to provide BSNL Rs 2,000 crore annually from the universal service obligation fund for a period of three years to compensate the loss of ADC revenue.

BSNL was getting Rs 5,000 crore annually through ADC till about two years ago from private players.

Following Trai’s announcement, telecom stocks soared today.

The Bharti stock rose 2.68 per cent to close at Rs 824.65, while Reliance Communications gained 2.27 per cent to end at Rs 538.05.

The Idea Cellular scrip also rose 2.13 per cent to finish at Rs 103.25.

[KumaarShah 143]

^^^

How much benefit will the operators pass on to us? Any one has any ideas?

[Dj 25]

yeah that too is a concern really as big as this news sounds... i read somewhere that effective change it brings to a 1 minute call charged at 1 re is to take it to 93 paise... although this is unconfirmed and off one of the forums...

[rbdhoot 11]

Lets hope they lower their tarrif as early as possible.

[vishalkumar 0]

yeah that too is a concern really as big as this news sounds... i read somewhere that effective change it brings to a 1 minute call charged at 1 re is to take it to 93 paise... although this is unconfirmed and off one of the forums...

Guys, only 7 paise reduction will be too low. I hope they reduce the call charges more.

[KumaarShah 143]

TRAI hangs up on ADC, rings in cheaper calls

28 Mar, 2008, 0600 hrs IST, TNN

NEW DELHI: Long-distance telecom (STD) tariffs are set to become cheaper with regulator Trai announcing on Thursday that access deficit charge (ADC) on domestic calls will be eliminated from April. International calls to India will also be cheaper as Trai has halved their ADC to 50 paise per minute from April 1 to September-end, after which it will be phased out.

Currently, all telcos pay 0.75% of total revenues towards ADC, which is used to support state-owned BSNL's unviable fixed-line operations in rural India. The levy's phaseout will enable the industry to save about Rs 700 crore annually. Within hours of the Trai announcement, all telcos said they would pass on the savings to subscribers. "We welcome the move. We are committed to passing on the benefit to our customers in an equitable manner and will announce it shortly," said a Vodafone Essar spokesperson.

"We are committed to pass on the benefits of ADC relief to customers, primarily in the rural areas as desired by Trai," a Bharti Airtel statement said. CDMA operator Tata Teleservices too said it will do the same. In any case, Trai wants customers to benefit from the move. Speaking to ET, Trai chairman Nripendra Misra warned that the regulator would intervene and reduce tariffs if telcos failed to pass on the benefits to subscribers.

"We are waiting to see how much of these benefits that operators get from the ADC phaseout is passed on to the subscriber. If we feel that it is not being passed on in its entirety, we will fix tariffs," Mr Misra said. And in a bid to address the concerns of BSNL, which has warned that it would be forced to discontinue all its rural fixed-line operations if the levy were to go, Trai has recommended that the government give it a subsidy of Rs 2,000 crore per annum for the next three years from the Universal Obligation Fund (USOF).

All telcos pay 5% of total revenues towards the USOF, which is dedicated to improve communication facilities in rural India. Currently, the unutilised amount in the USOF is about Rs 16,000 crore.

Justifying the move to provide continued support to BSNL, Mr Misra said: "Support to the incumbent may be necessary for their rural wireline operations as about 99.87% rural lines belong to BSNL and this legacy of fixed wireline network is an important national asset. BSNL could make these lines self-sustaining by offering value-added services once broadband proliferation takes place in rural India. Till then, it needs to be ensured that wireline connections are supported and their maintenance is taken care of through an appropriate subsidy."

However, BSNL has not taken kindly to the ADC elimination. It's learnt that the company is exploring the possibility of challenging Trai's move in the telecom tribunal. BSNL sources said Trai cannot phase out ADC until the regulator puts in place a system to ensure that its rural operations are backed. "The Rs 2,000-crore subsidy announced by Trai is only a recommendation. It does not guarantee us this amount," BSNL sources added.

The EconomicTimes

Edited March 28, 2008 by KumaarShah

[Sadikk 301]

Day is not far when u pay some fixed amount and use it unlimited. with 770 we did ON-NET.

Now ADC removed we can expect OFF-NET unlimited

No wonder they use to charge for radio in past, yes in 1940s they use to charge some amount to use/listen radios.

Hope Telcos will pay some money to use thier services to my kids

[kesav 127]

TRAI calls 2008-09 as "the year for rural telecom access"

TRAI asked operators to come up with constructive proposals for rural consumers within week's time. If otherwise, TRAI will make pro-active measures which may hurt operators.

source :: http://www.trai.gov.in/trai/upload/PressRe...27mar08no29.pdf

Now the big questions?

Will operators pass on the benefit(abolition of ADC) to customers?

Will ILD operators make call from outside the country cheaper?

Are the operators ready to serve the rural areas before TRAI jumps into the ring with whip?

Can BSNL one day become philanthropist from being a pauper?

Here's the answer from Indian Telecom operstors for TRAI's whip.

GSM, CDMA operators tie-up to launch ‘Rural Chalo’

Leading private GSM as well as CDMA operators have come up with a unique initiative named ‘Rural Chalo’ aiming at adding atleast 50 million rural subscribers.

Under the plan, each new rural subscriber would get an upfront discount of Rs 50 on the tariff package. This is besides Rs 75 as free talk-time in two or three installments spread over six-nine months, with effect from May 1, 2008.

The COAI, director-general, Mr T.V. Ramachandran, said this benefit of Rs 125 would incentivise both the take-up as well as the usage of mobile service in rural areas. “It will help to meet the rural telephony objectives of the government,” said Mr Ramachandran.

AUSPI, secretary-general, Mr S.C. Khanna, said that rigorous verification processes would continue while giving new connections. “This will be done not only to comply with the guidelines but also in order to ensure that the benefits flow to the genuine subscribers,” he said.

source :: http://www.telecomtiger.com/fullstory.aspx...ssfrom=topstory

[Dj 25]

^^^

its the only way to go if all these operators want to sustain their double digit growth in subscriber base... they have realised that the cities are pretty much saturated... rural is where the next big party will be...

[HetalDP 947]

ADC is Access Deficit Charges which is Recovered to Support Universal Service Obligaion

means if Reliance go to any Rural Area USO Fund is given to Reliance untill now Major fund was given to BSNL for Rural Roll outs

But as Now onward USO FUnd is not required as Major Rurals are Covered. ADC is not Licence fee or Revenue Shring

Government CHarges 8% as Sharing CHarges and One time Licence fee and Spectrum Fee and also 12% Service which come in our Bill

[@ksh@T 20]

BSNL moves TDSAT against TRAI decision to phase out ADC

NEW DELHI: State-run BSNL has challenged the telecom regulator TRAI's decision to phase out Access Deficit Charge, the rural remuneration levy, before sectoral tribunal TDSAT saying the withdrawal is arbitrary.

We filed the petition the day before yesterday... a top BSNL official said, adding the regulator's decision to phase out ADC is arbitrary and indifference to the rural telephony initiatives of the public sector major.

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

Private players have been opposing the payment of ADC saying it amounts to funding opposition.

In March 2008, the Telecom Regulatory Authority of India has removed the Access Deficit Charge (ADC).

As per its road-map the sectoral regulator has decided to abolish the ADC from 2008-09. For the financial year 2007-08, Trai had reduced ADC 37 per cent to Rs 2,000 crore from Rs 3,200 crore.

i was thinking this only howcome BSNL is latecomer in the issue . . this chapter should have started quite earlier

[kesav 127]

BSNL should feel happy about this news....

SC asks Tata, RCOM to pay Rs 700 cr ADC levy

NEW DELHI: In a major blow to Reliance Communications (RCOM) and Tata Teleservices (TTSL), the Supreme Court on Wednesday ruled that ‘Unlimited Cordless’ and ‘Walky’ services offered by the two companies were equivalent to wireless services and hence, the telcos were bound to pay access deficit charge (ADC) to BSNL. This implies that both RCOM and the Tatas have to pay BSNL a combined total of Rs 700 crore towards the ADC levy. RCOM’s share will be about Rs 400 crore and TTSL’s Rs 300 crore.

In 2005, the telecom tribunal, TDSAT, too had ruled that Unlimited Cordless and Walky were mobile services and not fixed line as claimed by both companies and had directed them to pay ADC, but RCOM and Tatas had challenged the tribunal’s decision in the SC. The tribunal had also justified its stance saying that the services — Walky, for instance — were capable of operating outside one’s premises within the short-distance calling area and therefore, must be treated as a Wireless in Local Loop Mobile (WLL-M) phone and not as a fixed line.

In August 2005, the Department of Telecom (DoT) too issued a directive categorising Fixed Wireline Services (FWT) on par with mobile services on the ground that operators had not taken the requisite steps to confine these phones to the premises of the subscriber.

On Wednesday, the SC bench headed by Justice HS Kapadia dismissed the Tata Teleservices and RCOM’s petitions and upheld the telecom tribunal order of September 2005 which held that these services are not fixed line telephones, but are limited mobile services.

RCOM contended that the SC ruling would not result in any additional burden on the company, adding that the liability was already accounted for. “The case pertains to the period 2002-03, prior to the corporate reorganisation of Reliance Communications, and has been fully provided for in the previous fiscals. There is no additional liability on the company following the judgment,” an RCOM spokesperson said.

“As the matter involves the honourable Supreme Court, we would not like to comment until we receive the copy of the order and study it at length,” a spokesperson for Tata Teleservices said.

Until March 31, 2008, all telcos shared a certain percentage of their revenues from mobile services with BSNL as ADC, which is used to support the PSU’s unviable operations in rural India. Telecom regulator Trai had phased out ADC from April 1, 2008.

However, at the time when BSNL had raised the demand for ADC from these companies, the levy was Rs 0.30/minute. BSNL’s calculation was based on its fixed wireless subscriber base in September 2005, which was about 6,00,000.

source :: http://economictimes.indiatimes.com/News/N...how/3000210.cms

[@ksh@T 20]

it was earlier news the reply was posted yesterday only

http://www.rimweb.in/forums/index.php?show...c=13085&hl=

RCOM has specified that it has no liability . .

[Honest 836]

TDSAT impleads COAI in BSNL petition

25 Aug, 2008, 1853 hrs IST, PTI

Accepting the request of GSM operators' body COAI, the telecom tribunal TDSAT on Monday impleaded it in the petition filed by state-run BSNL challenging removal of Access Deficit Charge (ADC).

NEW DELHI: Accepting the request of GSM operators' body COAI, the telecom tribunal TDSAT on Monday impleaded it in the petition filed by state-run BSNL challenging removal of Access Deficit Charge (ADC).

During the proceedings, a bench headed By Justice Arun Kumar admitted the application filed by the Cellular Operators Association of India.

BSNL, in its petition filed in May, had challenged TRAI's decision to abolish ADC from 2008-09. For the financial year 2007-08, TRAI had reduced ADC by 37 per cent to Rs 2,000 crore from Rs 3,200 crore.

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

On July 9, 2007, TDSAT had not admitted COAI's application in absence of some documents and had directed the association to file application along with the reply of main petition filed by BSNL.

In this matter, COAI rival CDMA lobby group AUSPI and Telecom Regulatory Authority of India had already submitted its reply.

The Telecom Disputes and Settlement and Appellate Tribunal also granted BSNL three weeks time to file rejoinder over the reply filed by them.

The tribunal has directed to list this matter on October 22 along with two other similar petition filed by BSNL challenging reduction ADC for 2006-07 and 2007-08.

[P. K. Daga 3]

Day is not far when u pay some fixed amount and use it unlimited. with 770 we did ON-NET.

Now ADC removed we can expect OFF-NET unlimited

No wonder they use to charge for radio in past, yes in 1940s they use to charge some amount to use/listen radios.

Hope Telcos will pay some money to use thier services to my kids

Sadik bhai only ADC abolision has been proposed, IUC will still be charged and till then pfnet free is not possible. Interconnect usage charges are paid for making ofnet calls

[Honest 836]

TDSAT declines to stay TRAI order on removal of ADC to BSNL

2 Oct, 2008, 1425 hrs IST, PTI

NEW DELHI: In a setback to state-owned telecom giant BSNL, telecom tribunal TDSAT has declined to stay TRAI's directive to remove levy paid by priva

te telecom operators to the PSU on incoming international calls in rural areas.

The Telecom Disputes Settlement and Appellate Tribunal said since the main petition, in which the telecom PSU had challenged the phased reduction of levy known as Access Deficit Charge (ADC), was still pending, there was no urgent need to stay TRAI's decision to do away with ADC at this stage.

Meanwhile, the tribunal also pointed out that if it ruled in favour of BSNL, the private telecom operators would have to pay the ADC on incoming international calls in retrospect, as mandated in the main petition.

"...Application is disposed of with a direction that the parties will abide by the decision of the main Appeal and will be bound by the same," said TDSAT bench headed by Chairman Justice Arun Kumar.

Access Deficit Charge is a levy paid by private telecom operators to BSNL for meeting the cost of unprofitable operations in rural areas for below the cost wire line and mobile services.

In the application, BSNL has submitted that as per the Telecom Regulatory Authority of India guidelines, ADC payable to it was ending from September 30, 2009 and this was hampering its revenues.

"TRAI has reduced ADC payable on international incoming calls from Rs 1 to Rs 0.50 and this would phase out the same from October 1, 2008. Even ADC payable to BSNL on incoming calls would be completely stopped," said BSNL in its application.

Terming it as 'irrational and arbitrary decision' of TRAI, the PSU giant further submitted that to fund its rural obligations and to compensate the incurred losses, ADC should be allowed.

"Till such time BSNL is to provide below the cost wireline and rural telephony, it is entitled to the requisite amount of ADC in order to compensate the deficit incurred in providing these below the cost wirelines and rural

telephony services," submitted BSNL.

Raising further question mark over TRAI's hurry in phasing out ADC, BSNL submitted, "When the appeals challenging the previous regulations on the same issue are pending before this tribunal, TRAI ought have to awaited decisions in the said appeals and ought to have restrained itself from issuing another regulation," said BSNl in its application.

The tribunal has clubbed all the previous three ongoing matters in which the telecom giant has challenged the ADC reduction for the financial year 2006-2007 and 2007-2008.

The tribunal has listed the main petition for next hearing on October 22.

As per its roadmap, the sectoral regulator has decided to abolish ADC from 2008-09. For the financial year 2007-08,

TRAI had reduced ADC by 37 per cent to Rs 2,000 crore from Rs 3,200 crore.