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AGR ruling may impact any company with a telecom licence

November 07, 2019
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As per industry sources, the Supreme Court (SC) order on the definition of adjusted gross revenue (AGR) may impact not only telecom operators but any entity that has taken telecom service licence, such as internet service providers (ISPs), satellite communications providers, cable operators. The move may also impact companies in the power, steel and railways sector.

To this end, the Department of Telecommunications (DoT) is reportedly examining the wider ambit of SC’s judgement. DoT could demand licence fees, interest, penalties and interest on penalties from about 40 licence holders.

As per DoT’s website, about 40 entities in power, steel, metro rail, oil and gas, cable television and other sectors have taken licences to provide national long distance (NLD), international long distance (INLD) and very small aperture terminal (VSAT) services, as well as a unified licence, including all of these categories.

According to industry estimates, this could take the total dues to more than Rs 940 billion over the past five years and more than Rs 2.8 trillion for the past decade, including interest and penalties.

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