The Telecom Regulatory Authority of India (TRAI) has released its recommendations titled ?Definition of Revenue base (AGR) for the reckoning of Licence Fee and Spectrum Usage charges?. Under these recommendations, TRAI has stated that the revenue generated by telecom operators from non-telecom activities such as financial investments and property rents be excluded while calculating adjusted gross revenue (AGR).
TRAI has recommended a concept called applicable gross revenue (ApGR), which will consist of gross revenue, less revenue from non-telecom streams as well as receipts from the Universal Service Obligation (USO) Fund. The AGR will then be computed by reducing pass through charges from ApGR.
The regulator has also formulated a list of other income items called a positive list, revenue from which would be reduced from ApGR.
TRAI has also suggested the share of USO levy in the licence fee should also be reduced from 5 per cent of AGR to 3 per cent, effectively reducing the uniform licence fee to 6 per cent, from the current 8 per cent, without reducing the proceeds of the government from licence fee. The USO Fund is used by the government to provide telecom connectivity in economically unviable areas.
TRAI had earlier floated a consultation regarding the matter in July 2014. The comments and counter comments from key stake holders were invited for the period between September 2014 and December 2014.
