INSUBCONTINENT EXCLUSIVE:
SC said that the adjusted gross revenue will also include other items besides licence fee.The Supreme Court on Thursday rejected telecom
companies' appeal against the government's definition of adjusted gross revenue (AGR) and allowed the Department of Telecommunications
(DoT to recover dues worth Rs 1.33 lakh crore from telecom companies - Bharti Airtel, Reliance Communications (RCom) and Vodafone Idea.The
Supreme Court said that the adjusted gross revenue will also include other items besides licence fee
However, the gains from sale of capital assets and insurance claims by telecom companies will not be a part of it, the top court further
said.The verdict came as a huge relief for the telecom department and as a big setback for the telecom operators, reeling under heavy debt
and intense competition in the sector."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," Bharti
Airtel spokesperson said."The TSPs have invested billions of dollars in developing the telecom sector and providing world-class services to
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
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," Airtel's spokesperson added.On the other hand, Vodafone-Idea said it will explore grounds to file a review application."We will
study the ruling as soon as it is available, along with our legal advisers, to determine next steps
If there are technical or procedural grounds for doing so, this could include a Review Application", a Vodafone-Idea spokesperson
said.Meanwhile, the telecom companies sought six months for clearing the dues.The Department of Telecom claimed dues of around Rs 92,000
crore as license fee and Rs 41,000 crore as spectrum usage fee from Bharti Airtel, Vodafone Idea and Reliance Communications.Department of
from Reliance Communications and Rs 8,485 crore from Idea Cellular.The revenue accruing to telecom companies other than termination fee and
roaming charges are a part of the adjusted gross revenue, the Supreme Court said.However, the telecom companies had argued that non-telecom
revenue like rent, internet income and dividend income should be excluded from the AGR.In 2006, the Telecom Disputes Settlement and
Appellate Tribunal (TDSAT) had decided the issue of AGR in favour of telecom companies.Following the Supreme Court's order, Vodafone Idea
shares plunged as much as 19 per cent, while Bharti Airtel dropped over 5 per cent.Get Breaking news, live coverage, and Latest News from
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