TRAI considering a three-stage process to dissolve the ADC regime by 2008-09

TRAI is considering a three-stage process to dissolve the access deficit charge (ADC) regime by 2008-09. In the first stage, it intends to reduce ADC to less than Rs 56 billion by 2006-07 and further reduce it to Rs 20.7 billion in 2007-08, before doing away with it completely. After the ADC is phased out, the USO Fund should be used to sustain Bharat Sanchar Nigam Limited’s (BSNL) rural operations. TRAI is also in favour of recovering ADC as a share of operators’ revenues instead of on a per-minute basis in the first stage (2006-07).