TRAI’s new ADC rules should result in cheaper call rates

TRAI’s new ADC rules should result in cheaper call rates

The Telecom Regulatory Authority of India (TRAI) has announced that they are proposing a reduction in the Access Deficit Charges (ADC) to Rs 3,335 crores. This should enable the telecom companies in India to offer more competitive rates especially when it comes to domestic long distance calls.

This new enforcement applies from the first of next month. TRAI has made an amendment to the Interconnect Usage Charges (IUC) Regulation after receiving comments from stakeholders on the consultation paper. They also held open house discussions in Bangalore and Delhi on the same to come to this latest conclusion.

The aim of this latest announcement is to bring more relief to the Indian telecom consumers who would benefit from the reduction in prices of calling rates on telephones. Some of the features of these new recommendations are:

* The total amount of ADC shall be reduced to Rs 3,335 crore and estimated ADC for BSNL would be Rs. 3,200 crore.
* Substantial reduction about 33 per cent for ADC.
* There will not be any ADC on per minute basis on domestic calls.
* ADC on International Long Distance (ILD) traffic shall continue to be on per minute basis but at a reduced rate of Rs 1.60/minute (more than 50 per cent reduction) for Incoming International calls, this in turn will reduce arbitrage and hence the grey market in international calls.
* ADC on outgoing international calls has been reduced to Rs.0.80/minute (reduction more than 65 per cent).