The Telecom Regulatory Authority of India is planning to issue a consultation paper to review the definition of adjusted gross revenue (AGR) regarding licences provided by the Department of Telecommunications (DoT).
Earlier, DoT had requested TRAI to offer its views on the definition of AGR for the licences issued to the internet service providers (ISP). The regulator thereby informed DoT that it intends to take a comprehensive view regarding the definition and scope of AGR for all types of licences issued by the department. Writing to the telecom secretary, M.F. Farooqui, TRAI has stated that a standalone recommendation for ISP licence may ?create a non-level playing field among various telecom service providers? and therefore the regulatory body has proposed to ?holistically review the definition of AGR for all types of telecom licences.?
The definition and the scope of AGR continues to be a contentious issue between the service providers and DoT. The operators have been suggesting that the revenue arising out of providing telecom services should be considered for determining AGR. Meanwhile, according to DoT, AGR should cover revenue earned by a service provider from corporate receipts, handset sales, real estate transactions and interest earned from bank deposits.
