TRAI announced last Thursday(27/03/2008) that ADC (Access Deficit Charge) will be completely removed from April 1.
LIRNEasia was the only non-Indian entity that sent responses to the TRAI consultation paper no. 2/2008 dated 21st January 2008 on Access Deficit Charge (ADC).
Here, as the response to the first question LIRNEasia said
We agree with phasing out of the ADC. Our work on the subject in 2004-05 led us to advocate this same position by questioning if the ADC was merely ‘a politically motivated tax on private operators to protect the incumbent, its employees and its copper-wire access network during a very long transition to competition.’ 1 Today, in 2008, the need for the phasing out the ADC is much greater as there is no need for every new mobile customer getting connected to a network; who is more rural and less affluent, subsidizing a legacy wireline customer; who by virtue of having got connected early on is less rural and more affluent.
LIRNEasia lead economist Harsha de Silva also gives a critical analysis of the Indian experience on ADC in his book chapter in LIRNEasia’s new book ICT INFRASTRUCTURE IN EMERGING ASIA.
Click here to download the TRAI news release
Click here to download the responses to the TRAI Consultation Paper
Click here to view the chapter on ADC in LIRNEasia new book
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