In an interesting turn of events, private mobile and unified licence operators may decide to join the ADC litigation which is expected to begin shortly in the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) between BSNL and the telecom regulator (TRAI).

Access Deficit Charge (ADC) is a levy paid by consumers to cover the difference between the cost and regulated tariff of providing fixed line service.

The private operators role assumes significance as it is their mobile and long distance customers, who are burdened with ADC. It is estimated that ADC collection since May 2003 has put an extra 15% burden on mobile and long distance tariffs alone.

The ADC Order became effective on March 1, 2006. Members of COAI and Auspi are opposed to BSNL taking a legal position against the Order long after its implementation as its benefits have already been passed on to consumers.

BSNL has filed an appeal in TDSAT accusing the TRAI of arbitrarily reducing the ADC payment to BSNL to a mere Rs 3,200 crore without any just or logical reason, placing its requirement closer to Rs 13,830 crore per annum.

BSNL is especially opposed to TRAI’s logic of ADC being a 'depleting'regime ending in 2008. In its petition, it argues that the private sector has completely failed to discharge its obligations towards rural telephony, leaving BSNL with this burdensome task.

Private operators, in turn, question the timing of BSNL’s filing given that the first drastic reduction of nearly 60% from Rs 13,000 crore to Rs 5,340 crore per annum was ordered way back in October 2003.

Interestingly, the government recently told the Parliament that BSNL was unable to account for the total ADC received since 2003. While estimates range from Rs 20,000 crore upwards, BSNL will need to substantiate ADC received and its end use, say private operators.

Ironically, critics of the ADC regime have always argued that Trai’s Orders lack transparency and do not mandate or provide any audit on how these funds are used by BSNL. Now, it seems BSNL who is the biggest beneficiary of ADC itself has turned around and criticised TRAI for much the same.

ADC has always been hugely controversial, as it was identified by TDSAT as the cause of a massive gray market. This led to the prosecution of Reliance Infocomm in 2005 after it was caught masquerading international calls as local.

(http://timesofindia.indiatimes.com)