Revised IUC Order to Impose ADC on Cellular Operators

TRAI plans to reduce interconnect usage charges (IUC) and access deficit charges in its revised IUC order. The lowering of ADC will couple with its enforcement on service providers and private basic telecom operators. The imposition of access deficit charge (ADC) on cellular service providers will increase the tariffs for STD and ISD calls, as under the existing regime, cellular operators do not pay any ADC and hence are able to offer low STD and ISD tariffs. The modalities of the final IUC scheme have already been cleared by the authority. The order is in the final stage of formulation and is likely to be issued in a week. This has been done taking into account the consultation paper issued by the regulator in May this year to review some of the IUC guidelines issued earlier in January this year following a series of protests by the operators.