Telecom regulator TRAI Friday sought inputs from stakeholders on defining
components that should be considered revenue of Internet service
providers (ISP), including 4G spectrum holders.
requested to give their comments on definition of AGR (adjusted gross
revenue) for all three categories of ISP licences," TRAI said in its
consultation paper on 'Definition of AGR in Licence Agreements for
provision of Internet Services and minimum presumptive AGR.
The government imposes licence fee on AGR.
the purpose of arriving at AGR currently, charges from pure Internet
service, activation charges from pure Internet subscribers and roaming
revenue actually passed on to other eligible/entitled telecom service
provider, among others, are excluded.
Telecom Regulatory Authority
of India (TRAI) has issued a consultation paper following
recommendations sought by the Department of Telecommunications (DoT) on
The DoT has amended the ISP licence on June 29 and will impose a uniform licence fee of 8 per cent from April 1, 2013 on AGR.
DoT has sought TRAI's recommendation on minimum presumptive AGR, which
is a new format, and value that can be applicable for BWA (Broadband
Wireless Access) Spectrum holders under Internet Service and Access
Service licenses, keeping in view the agreement that it had with winners
of 3G and BWA spectrum auction.
Reliance Industries owned Infotel
Broadband, Bharti Airtel, state-run BSNL and MTNL, Aircel, Tikona
Digital, Augere and Qualcomm hold BWA spectrum that can be used for 4G
services in 2010.
Infotel is only player among eight firms that holds a pan-India BWA spectrum.
of these players, only Bharti Airtel and BSNL are providing services
using BWA spectrum. Other players are yet to roll out their network.
introduction of a new form of AGR, TRAI said some service providers
have not started their operations even after the lapse of sufficient
time from the date they were issued licences. Thus, they are not
generating any revenue which is resulting in loss of revenue for
government as well.
"...the licence fee and spectrum usage charges
are being charged as percentage of AGR, in case some service providers
do not roll out their service, they do not generate revenue and hence
not liable to pay any licence fee and spectrum usage charges. This
results in the loss of revenue to the government," TRAI said.
new concept of presumptive AGR is floated to ensure that service
providers "make sincere efforts in establishing network and start
service at the earliest, a minimum licence fee and spectrum usage
charges based on presumptive AGR may be considered."