Total ADC requirement is Rs 14,300 cr: BSNL tells TRAI

Opposing telecom regulator TRAI's decision to cut the Access Deficit Charge, state-run BSNL has sought an almost five-fold jump in the levy paid by private operators for its rural operations to Rs 14,300 crore a year.

BSNL, which has dragged TRAI in telecom tribunal TDSAT over the issue, told the regulator that the total ADC per year to offset its deficits on account of running below-cost rural services is about Rs 14,300 crore.

The BSNL is slated to get Rs 3,200 crore in 2006-07 as ADC. This is likely to decline to Rs 1,600 in 2007-08 after TRAI announced a reduction in the levy in April last year.

The company said as per the calculation of ADC on the methodology prescribed by TRAI, the gross rental deficit for all Direct Exchange Lines (DELs) is Rs 12,089 crore.

The calculation is based on total DELs at 3.51 crore. Average rental cost per DEL is Rs 425 per month and its recovery is Rs 138, leaving a rental deficit of Rs 287.

The gross rental deficit for all DELs is Rs 12,089 crore and if deficit is calculated for free calls and subsidised calls, the total ADC will be more than this amount.

ADC based on rural DELs will be Rs 8,771 crore. There are 1.28 crore rural DELs and a deficit per rural DEL of Rs 571 per month. The ADC on account of free calls is Rs 2,074 crore and subsidised call is Rs 3,456 crore, taking the total to Rs 14,301 crore of ADC a year.