Will the Minister of COMMUNICATION AND INFORMATION TECHNOLOGY be pleased to state:-

(a) whether TRAI has decided to do away with levying Access Deficit Charges (ADC) on telecom operators as a result of which domestic call (Local and STD) charges would become cheaper; and

(b) if so, to what extent domestic calls are likely to become cheaper and the likely new rates to be fixed by various telecom operators, including the BSNL and MTNL, and by when are they likely to be made effective

ANSWER

THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY
(SHRI A. RAJA)

(a) & (b) A statement is laid on the Table of the House.
STATEMENT TO BE LAID ON THE TABLE OF RAJYA SABHA IN RESPECT OF PARTS (a) AND (b) OF RAJYA SABHA STARRED QUESTION NO. 441 FOR 24TH APRIL, 2008 REGARDING DOMESTIC CALL CHARGES.
(a) & (b) The Telecom Regulatory Authority of India (TRAI) has decided to do away with the levying of Access Deficit Charges (ADC) which was being charged at a rate of 0.75% of Adjusted Gross Revenue (AGR) on telecom operators for domestic segments w.e.f.. 1.4.2008. However, ADC on incoming International Long Distance Calls has been reduced from Rupee 1 per minute to Rupee 0.50 per minute w.e.f. 1.4.2008 and is to be phased out from 30.09.2008.
As per the existing provisions of Telecommunications Tariff Orders (TTO), tariff for telecom services are under forbearance, except with regard to Fixed Line Service in Rural Areas, National Roaming Service in Cellular Mobile Service and Leased Line Service. The reduction in levy is of the order of 0.75% of AGR and its impact on domestic call charges is less than 0.75%.