TRAI has announced a cut in the access deficit charges (ADC). As per the new rates, the ADC on intercircle domestic calls has been slashed by 62.5 per cent to Re 0.30 per minute (as against Re 0.80 per minute previously) for calls beyond 200 km. The ADC for intercircle domestic calls for distances between 50 km and 200 km has been reduced by 40 per cent to Re 0.30 per minute from Re 0.50 per minute earlier. For international long distance calls, the charges have been reduced by 41.18 per cent on outgoing calls and 23.53 per cent on incoming calls. From the existing flat rate of Rs 4.25 per minute, the new charges are Rs 2.50 per minute for outgoing calls and Rs 3.25 per minute for incoming calls. There is no change in the ADC for local and intercircle calls between two points that are up to 50 km apart.

The new ADC regime will come into effect from February 1, 2005. The regulator has, however, emphasised that the reduction in ADC will not affect Bharat Sanchar Nigam Limited's (BSNL) operations and that the simplified regime will help increase telecom penetration and density. While BSNL has opposed the move, private operators like Bharti and Idea have welcomed it.

These operators have announced that the benefits of the reductions will be passed on to the consumers.