BSNL has challenged TRAI's decision to phase out ADC levy from April 1, 2008, before the TDSAT. According to BSNL, the regulator's decision to do away with the ADC regime was arbitrary and did not take into account BSNL's rural telephony initiatives. TRAI has, however, justified its move to do away with the ADC regime on the grounds that the total support provided to BSNL in various forms was over $8 billion, and that it cannot be supported in perpetuity.