TRAI comes out with directives on AGR for operators

Published: Thursday, September 21, 2006, 20:08 [IST]
 

New Delhi, Sep 21 (UNI) The Telecom regulator today said that proper audit trials should be available for items which are to be excluded from the Adjusted Gross Revenue (AGR) of the telecom operator and has recommended several components that should be included and excluded from these revenues.

The Authority has recommended that the following components, should form part of AGR: Interest calculated on refundable deposit from subscribers, Vendors credit, Revenue from rent of towers/dark fibers, payment received on behalf of third parties, sale of handsets or telecom equipment bundled with telecom service and receipt on account of ADC.

Likewise the Authority had recommended that following components should not form part of AGR: income from dividend, capital gains unless receipts have come from telecom activities, gains from foreign exchange fluctuations, reversal of provisions, revenue from discernible and stand alone sale of handset or telecom equipment which is not bundled with telecom service.

Also, the revenue accruing in both direct and indirect activities to the telecom operators should form part of the Adjusted Gross Revenue (AGR).

Revenue from bundled sale of goods and services to be considered as part of AGR unless sale of goods is clearly discernible and services offered remain unaltered even on a stand alone basis.

The Authority in its recommendations also observed that the definition of AGR along with the Statement of Revenue and Licence fee appended to the respective licence agreements would need to be brought in line by Department of Telecommunication (DoT) with final order of TDSAT.

Earlier, TDSAT had remitted the issue of Adjusted Gross Revenue to TRAI for undertaking an exercise of finding out which component of AGR, as defined in the conditions of licence, deserves to be retained and which component be excluded therefrom.

The TDSAT further directed that the recommendations of TRAI in the matter be submitted to it preferably within three months of the order.

In compliance of the direction of the Tribunal, the TRAI had submitted its recommendations on the question of components of AGR to the Tribunal on 13th September 2006 with a request to permit TRAI to place the same on its website TDSAT while hearing the application of TRAI on 21st September 2006 has allowed TRAI to place the recommendations on its website and the concerned parties were directed to access the same from the TRAI's website.

In deference to the directions of the Tribunal, the TRAI today has placed its recommendations on its website and the same can be accessed at www.trai.gov.in.

UNI RT SBA RK1918


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