Adjusted gross revenue
Also called: AGR · Topic: Infrastructure: Transport, Communications and Energy · NCERT: Beyond NCERT
Meaning
Adjusted gross revenue (AGR) is the part of a telecom company's revenue on which it pays charges to the government. Two charges are calculated on it:
- the licence fee, which is 8% of AGR and includes a 5% levy for the universal service obligation;
- spectrum usage charges, which are fees for using the airwaves.
The wider AGR is defined, the more operators must pay.
Example
In October 2019, the Supreme Court ruled that non-telecom revenue must also count in AGR. This created dues of about ₹1.5 lakh crore and put heavy strain on the sector. The September 2021 relief package changed AGR for the future so that it excludes non-telecom revenue. It also gave a 4-year moratorium on dues, meaning a pause in payments.
Don't confuse with
- Gross revenue: Gross revenue is all the income an operator earns. AGR is that income after the permitted adjustments, and it is the base the government uses for its charges.