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Figure 1 : Mobile Growth and TRAI initiatives

3.

The exceptional growth in subscriber base has resulted in a substantial

change in the situation that was considered for determining the ADC regime

notified in the Regulation of 29 th October 2003. The large unanticipated

increase in Mobile subscriber base has led to a much higher number of total

minutes, which fund the overall ADC amount. Thus, even with the same

amount of ADC funds to be collected, the per minute ADC charge can be

lower due to the increase in minutes on which the ADC charge is applied.

Inter alia, taking this important factor into account, the Authority has

conducted another review of the ADC regime based on its Consultation Paper

of 23rd June 2004.

The regime notified in this Regulation takes account of all the inputs provided

during the Consultation process, which in a number of cases involved