BSNL has demanded that TRAI initiate necessary steps to enable the company to recover arrears in access deficit charges (ADC) worth approximately Rs 110 billion, due to it as of January 2005. It has also opposed a further cut in ADC. In the first phase of the IUC regulation, TRAI provided Rs 123 billion as ADC for BSNL. The company, however, received only Rs 78.5 billion, leading to a shortfall of Rs 45.3 billion. In the second phase of the IUC regulation, TRAI provided for Rs 47 billion but BSNL's estimated receipts were Rs 45 billion –­ amounting to a shortfall of Rs 2 billion. BSNL says this deficit was because certain amounts have been wrongfully deducted on account of local call surplus and licence fee reimbursements.