City
Epaper

DoT checking if SC's AGR definition goes beyond telcos

By IANS | Updated: November 8, 2019 15:15 IST

The Department of Telecom's licensing division is currently checking if the Supreme Court order on telecom revenue applies to any user company of spectrum and also to those who own a valid telecom licence after telcos brought it informally to the DoT brass' notice.

Open in App

According to sources, telcos brought to the notice of DoT that the SC definition or the DoT definition of the Adjusted Gross Revenue (AGR) applies to any entity that has taken a telecom service licence, such as internet service providers (ISPs), satellite communications providers, cable operators and even companies in the power and railways sector. Both legal experts and telcos said this brings them also under the net of AGR-based dues, so it all may take the government payments if it actually translates into realisation much more than Rs 1.3 lakh crore across the industry and all PSUs.

As the wider ramifications are slowly emerging of DoT's now SC-backed AGR, the ministry officials say practically speaking companies - licensees like PGCIL, RailTel, Internet Service Providers, Prasar Bharti, under broadcasting - satellite communications providers, cable operators will come under the definition and their dues also need to be calculated. But the details are being studied for such companies who are not telecom service providers.

These companies may suddenly be given demand notices running into crores and they may object to DoT's not informing them for so many years about this, DOT officials said.

A senior telco executive said so far DoT has focussed only on telcos but now it will have to see how others would pay. In the case of RailTel and PGCIL who have ISP licence of Grade A and RailTel is a managed telecom service provider, if the dues will be calculated on the overall revenue of the company, it will have to be studied with legal definition.

The government has formed a Committee of Secretaries to work out a financial bailout package that may include lowering of spectrum charges.

The Committee of Secretaries, headed by Cabinet Secretary Rajiv Gauba, has been asked to examine "all aspects" of "financial stress" faced by service providers such as Bharti Airtel and Vodafone Idea and suggest measures to mitigate them. The panel has held one meeting so far.

( With inputs from IANS )

Tags: RailtelBharti AirtelRajiv Gauba
Open in App

Related Stories

BusinessVodafone Idea Shares Fall After Telecom Firm’s ₹45,000-Crore Investment Plan Fails to Impress Analysts

BusinessMobile Recharge Set to Rise? Jio, Airtel and Vi May Increase Tariffs by 16–20% in 2026

BusinessVodafone Idea Shares Rise by 1% After Telecom Revenue Grows in Q2FY26

BusinessVodafone Idea Share Surge 10% on Reports of PMO Considering Relief Proposal for Debt-Ridden Telecom

BusinessAirtel and Bajaj Finance Team Up To Launch Major Digital Platform for Financial Services

कारोबार Realted Stories

BusinessKALKI Collaborates with Renowned Celebrity Stylist Rhea Kapoor to Redefine Occasion Wear for the Modern Indian Woman

BusinessCustomers trust banks with data, but only fully satisfied with fraud resolution: EY Report

BusinessA Voices Unheard Film Champions Global Impact Cinema at the 34th Raindance Film Festival

BusinessBounteous Appoints Srikanth Kamaraju as Executive Vice President, India Practice Leader

BusinessIndia's Glimmora International Guinness World Records for 24-Hour AI Platform Development Hackathon