Mobile Call charges to fall, as TRAI cancels ADC

The Telecom Regulatory Authority of India (TRAI) has decided to cancel the ADC (Access Deficit Charge) component on domestic calls by April 01, 2008. The latest move will pave the way for a reduction in mobile call charges on both STD and ISD sector. ADC is a levy paid by private players to BSNL to carry out rural operations amounting to Rs 5000 cr.

BSNL used to utilize that money to compensate the PSUs to take services in rural areas, where private companies were reluctant to go. The Cellular companies have been long demanding the abolition of ADC. While the ADC component on the international incoming calls has been reduced to 50 paise from existing Rs. 1, it has been completely removed from domestic calls. The revised calls rates could be announced next week.