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New Update
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A statement was released by Bharti Airtel this afternoon on Supreme Court's decision on the Adjusted Gross Revenue (AGR). AGR is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT). The contention is on the particulars considered to calculate the amount payable. The Supreme Court has now upheld the definition of Adjusted Gross Revenue (AGR) calculation as stipulated by the Department of Telecommunications. It is believed that telecom companies like Airtel and Vodafone Idea might have to pay up approximately Rs 92,642 crore to the government.
In this regard, a spokesperson from Airtel has commented saying:
"We are disappointed by the verdict of the Hon’ble Supreme Court. The definition of AGR has been a long standing dispute between the DoT and the Telecom Service Providers (TSPs) dating to 2005. The issue of inclusion of revenue from non-telecom activities and interpretation of the heads included in the definition of AGR under the license conditions has been through several rounds of litigation, which have been in favour of the TSPs till now.The TSPs have invested billions of dollars in developing the telecom sector and providing world-class services to consumers. This decision has come at a time when the sector is facing severe financial stress and may further weaken the viability of the sector as a whole. Of the 15 old operators impacted by the order, only two private sector operators remain in service today. The Government must review the impact of this decision and find suitable ways to mitigate the financial burden on the already stressed industry.We will be able to comment further only after reviewing the order in detail."