DoT amends Adjusted Gross Revenue (AGR) definition in Unified License agreement

The Department of Telecommunications (DoT) today issued an amendment in the Unified License agreement for Adjusted Gross Revenue (AGR). The Telecom Department being the licensor reserves the right to modify the terms and conditions of the license agreement as and when needed.

The amended clause has introduced Applicable Gross Revenue (ApGR) as a definition along with the existing Adjusting Gross Revenue (AGR) for the purpose of calculation of license fee. Applicable Gross Revenue (ApGR) will be equal to the Gross Revenue (GR) of the licensee but reduced to certain items namely revenue from operations other than telecom activites, revenue from activities under a license issued by the Ministry of Information and Broadcasting (MIB), and receipts from the USO fund.

ApGR will exclude other incomes from GR such as income from dividend, income from interest, capital gains on the account of profit of sale fixed assets and securities, gains from foreign exchange rates fluctuations, income from property rent, insurance claims, bad debts recovered, and excess provisions written back.

Adjusted Gross Revenue (AGR) will be arrived at by excluding certains items from Applicable Gross Revenue (ApGR) namely PSTN/PLMN/GMPCS related call charges paid to other telecommunications service providers within India, GST paid to the Government if ApGR had included as component of GST, and roaming revenues passed onto other telecommunications service providers.