The Department of Telecommunications (DoT) has expressed reservations regarding the Telecom Regulatory Authority of India (TRAI) recommendation to allow two per cent deduction in the adjusted gross revenue (AGR) payable by operators offering services in the Northeast.
Earlier, the regulator had suggested that operators who cover 80 per cent of habitations with population of over 250 in the Northeast and Assam circle must be allowed a deduction of two per cent in the AGR. According to TRAI, such a move would act as an impetus for the operators to improve telecom coverage in the Northeast and Assam.
However, DoT is of the view that such a move would lead to complexities while calculating AGR, and hence a different approach must be adopted to encourage operators to extend telecom coverage in the Northeast and Assam region. As per various industry reports, the department instead is considering the option of offering a discount of two per cent in the licence fee payable by the operators on the revenue that they earn.
Further, the DoT has stated that the best way forward to provide incentives to operators for increasing coverage in the Northeast would be extending support through the universal services obligation fund instead of offering any discounts either on the AGR or the licence fee.
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