ISD tariffs to fall on ADC revision, Trai to decide this week

The international long distance calls (ISD) may become cheaper as telecom regulator Trai is considering reducing levy on both outgoing and incoming ISD calls from April 1.

According to sources, Trai will be meeting this week to finalise the annual review of access deficit charge, a levy being paid by private operators to BSNL for rolling out services in remote and rural areas, which may be reduced on ISD traffic.

The ADC on both outgoing and incoming ISD calls may be reduced by up to 50 per cent and the current total ADC of 1.5 per cent of gross revenue is also likely to come down to one per cent.

As per the road map the total ADC, currently at Rs 3,335 crore, should be lowered to Rs 1,600-1,800 crore for 2007-08 before being phased out by next fiscal to zero.

Even as state-owned BSNL has objected to reduction in ADC annually, Trai has been maintaining that the road map for phasing out the levy would be followed.

The domestic long distance (STD) call tariffs may also fall marginally as the reduction would be spread over to all segment but more on the ILD traffic.

The new ADC regime will come into effect from April 1 this year.

The implementation of the new regime may, however, get delayed as the telecom tribunal Tdsat is hearing a petition on ADC regime challenged by BSNL.

Sources in the Trai said that although the new regime was independent of any past litigation but it (Trai) would prefer to wait for the final judgement from the tribunal.