SC verdict defining telecom operators’ AGR soon

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Supreme Court.

New Delhi,  The Supreme Court is expected to soon pronounce its judgment on a case relating to the definition of adjusted gross revenue (AGR) of telecom operators.

The judgement, expected on Thursday, assumes significance as telecom operators might be required to pay around Rs 92,000 crore as outstanding licence fee, penalty and interest.

The AGR definition issue has been going on various tribunals and courts between the operators and the government for a number of years.

At present, the government is entitled to get 8 per cent of a telecom operator’s AGR as licence fee.

However, the Department of Telecommunications wants to include other revenue streams, such as income on interest and from handset sales amongst others, in the AGR.

On the other hand, telecom operators argue that AGR should only constitute revenue from core operations.

If it goes against them, the judgement can have an adverse impact on telcos which are already suffering from severe financial stress.