Friday, January 7 2005 21:03 Hrs (IST) - World Time -

New Delhi: State-owned Bharat Sanchar Nigam Ltd (BSNL) today (Jan 7, 2005) said the new ADC regime announced by TRAI (Telecom Regulatory Authority of India) would result in a Rs 1254 crore loss annually and might upset its operations in the rural areas.

"BSNL has to provide rural telephones at tariffs of Rs 50 a month only against the average cost-based rental of Rs 361. In addition, it provides more free calls and lower call charges for rural customers so as to keep these services affordable," BSNL said in strongly worded statement.

The new regime of Access Deficit Charge (ADC), a levy paid by private operators to BSNL for rural operations, is likely to cause revenue loss of about Rs 1254 crore per annum, BSNL said, adding, "The new ADC regime will not only affect our development activities but will also adversely impact the roll out of our services in rural areas as well."