TRAI Determines Final Phasing Out Of ADC

The Telecom Regulatory Authority of India ("TRAI") has recently issued the ninth amendment to the Interconnection Usage Charges ("IUC") regulation which deals, among other things, with the ADC payable by private service providers to the incumbent Bharat Sanchar Nigam Limited ("BSNL").

The Access Deficit Charge ("ADC") regime was first introduced by TRAI in the year 2003, with the primary purpose of facilitating the incumbent to transit from monopoly to competitive regime and give adequate time for tariff rebalancing. Under the policy framework ADC was meant to be a time-limited, depleting regime that was proposed to be phased out in 2008-09 and any resultant responsibility of sustaining incumbents rural wireline network transferring on Universal Service Obligation Fund ("USOF").