Adjusted Gross Revenue (AGR)

Adjusted Gross Revenue (AGR)

Subject: Economy

Context: With two of the three operators having huge AGR liabilities as a result of the SC judgement the govt saw the raising of Rs 77, 814 crore through spectrum allocation as a positive development.

Concept:

• It is the usage and licensing fee (spectrum usage charges and licensing fees, pegged between 3-5 percent and 8 percent respectively) that telecom operators are charged by the Department of Telecommunications (DoT).
• It is calculated based on all revenues earned by a telco – including non-telecom related sources such as deposit interests and asset sales.
• Earlier the SC upheld the DoT definition of the AGR which included dividend, interest income or profit on sale of any investment or fixed assets.