Telecom Operators To Pay Rs.92000 cr – Free PDF Download

GOVERNMENT VS TELECOM OPERATORS

• The tussle started when telecom operators migrated to a new system offered by the government in 1999.
• This new system came to be known as revenue-sharing model.
• Under this, they agreed to share a certain percentage of revenue with the government as a license fee.

ADJUSTED GROSS REVENUE (AGR)

• The revenue from which telecom operators agreed to share with government is AGR.
• Initially, 15% AGR was fixed as licence fee under revenuesharing model.
• This was reduced to 13% and then to 8% in 2013.

WHAT IS THE MAIN PROBLEM?

• The government and telecom operators differed on the definition of AGR.
• The Telcom operators contended that AGR should include only core telecom services.
• But the Centre’s contention was that AGR should also include dividends, handset sales, rent and profit from scrap sale.

WILL TELECOM OPERATORS BE ABLE TO PAY THIS?

WHERE THE PROBLEM LIES?

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