The Department of Telecommunications (DoT) has clarified that a telco’s actual adjusted gross revenue (AGR) will be taken after excluding revenue from wireline services while calculating the total spectrum usage charge (SUC) payable with the weighted average method.
The clarification by DoT is related to its earlier order dated June 21, 2022, wherein the government had scrapped the 3 per cent floor on SUC. This would translate to a sharp cut in telcos’ future outlaws towards these statutory fees.
As per analysts, the clarification is logical as wireline services do not require spectrum, and accordingly, AGR must not include revenue from landline operations while computing a telco’s SUC.