ADC windfall up ahead

The government is keen to switch to a revenue-share model for Access Deficit Charges ADC, which is paid by operators to BSNL to compensate its unrenumerative rural markets. But it has shelved hopes of unbundling last-mile telecom infrastructure, which could affect private operators8217; plans to take voice, internet and broadband directly to consumer homes. 8216;8216;If the ADC moves to revenue-sharing method, many pending issues in telecom will be resolved,8217;8217; Telecom Minister Dayanidhi Maran said today. As consumers foot the entire cost of ADC, revenue-based calculations may reduce tariffs, particularly long-distance tariffs. Nearly 50 per cent of the Rs 5,000 crore ADC BSNL gets is from ILD calls.

However, the telecom regulator Trai has warned that a higher-revenue share percentage can actually hike local call costs. Of late, DoT has been considering several models to rejig ADC calculation. These include affixing a higher percentage of revenue share on all calls, or allowing ILD operators to negotiate call termination charges with carriers outside India.