Trai asked to redefine adjusted gross revenue

NEW DELHI: Telecom Dispute Settlement Appellate Tribunal (TDSAT) on Friday asked Trai to give fresh recommendations on the definition of adjusted gross revenue (AGR). Trai (Telecom Regulatory Authority of India) has been asked to submit its report in three months. AGR is the figure from which telecom companies calculate the revenue share part of their licence fee.

Telecom operators have to pay a part of their AGR as licence fee to the government. While calculating licence fee, even non-service part of the revenue of a company is considered part of the revenue. For instance, if an operator sells handsets, then the revenue from sale of handsets is included in AGR.

In its recommendations earlier, the Trai had said that non-service revenues should not be included in the AGR. The government rejected its recommendations.“We think it more appropriate that the matter should be remanded to the Trai which is the 3rd respondent herein, before whom the government should produce the material relied by it

while rejecting Trai’s recommendation so that Trai can consider the same and send its conclusions to this tribunal,” said TDSAT in its judgement.Private telecom operators had approached the TDSAT on this issue when the government rejected Trai’s recommendations.