The Supreme Court of India on Thursday ruled in favour of the government on the AGR (Adjusted Gross Revenue) issue, ordering telecom operators, including defunct ones, to pay the government Rs. 92,642 crore. The Apex court has upheld the definition of AGR as stated by the Department of Telecommunications thus adding to the miseries of already ailing telecom sector.
For the unknown, AGR is the usage and licensing fee that the telecom operators are bound to pay to the Department of Telecommunications.
As per DoT, the charges have to be calculated after taking all the revenues earned by the telecom under its brand name, including non-telecom related sources such as deposit interests and asset sales. However, Telecom operators wanted AGR to be calculated after taking only the revenues generated from telecom services into account.
Operators pay around 3-5% and 8% of the AGR as spectrum usage charges and licence fees, respectively.
Read more at Money Control