The two telecom providers will now have to pay Rs 50,000 crore to the Department of Telecommunications
Supreme Court on Thursday rejected telecom companies’ appeal against the Union government’s definition of Adjusted Gross Revenue. The apex court will later decide on the timeframe for the operators to pay AGR.
The definition of AGR has been a long standing issue between the Department of Telecommunications and the Telecom Service Providers (TSPs), in particular, on some items that the TSPs strongly believed should not be included while calculating AGR since these are not part of the core telecommunications services.
In a major blow to telecom majors Bharti Airtel and Vodafone Idea, the Supreme Court on Thursday ruled that the existing definition of Adjusted Gross Revenue (AGR) will prevail. This implies that the two telecom providers will now have to pay Rs 50,000 crore to the Department of Telecommunications (DoT).
The issue had been dragging for the past 14 years with the telecom providers and DoT locked in battle over the definition of AGR. While the telecom providers insisted that AGR only included revenue from core operations, DoT maintained that AGR also included revenue from operations, other than core ones…
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