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TRAI issues CP on definition of AGR for reckoning licence fee

MUMBAI: The Telecom Regulatory Authority of India (TRAI) has released a consultation paper (CP) on ‘Definition of Revenue Base (AGR) for the Reckoning of Licence Fee and Spectrum Usage Charges’. The CP has been undertaken suo moto under Section 11(1)(a)(ii) of the TRAI Act, 1997.

The objective of the CP is to initiate an exercise to review the definition of gross revenue (GR) and the permissible deductions to arrive at adjusted gross revenue (AGR) in the context of the National Telecom Policy 2012, the changes made in the licensing regime, the transition from the administrative allocation regime towards market-determined prices for spectrum, and the conclusion of tenure of many licences.

The CP provides relevant background information on the subject covering various issues. Some of the important issues covered in the paper include:

  • Definition of GR and permissible deductions to arrive at AGR
  • Components of GR and AGR and minimum presumptive AGR
  • Rates of licence fee and spectrum usage charges
  • Formats of statements of revenue and licence fee
  • Audit and verifiability of revenue and licence fee

Written comments on the issues raised in the CP are invited from stakeholders by 1 September and counter-comments by 8 September.