Mobile STD rates set to dip 10%

Posted on | August 25, 2005 |

ET reports about a DoT policy directive to TRAI saying the access deficit charge should be levied on the basis of a percentage share of annual revenue and not on a per-minute basis. Under the existing ADC policy, operators have to pay 30 paise as ADC to the government for every minute of STD call. Revenue based ADC will lead to a drop in tariffs of over 10% for cell users.

ADC is a charge imposed on long distance services and passed on to fixed line access providers who are mandated to provide services below cost. ADC is followed all over the world whenever the market is opened up for competition.

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