Q. Consider the following statements about Adjusted Gross Revenue (AGR):
1. AGR is a fee-sharing mechanism between the government and the telecom companies.
2. It is divided into spectrum usage charges and licensing fees.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

About Adjusted Gross Revenue (AGR):

  • AGR is a fee-sharing mechanism between the government and the telecom companies who shifted to the ‘revenue-sharing fee’ model in 1999, from the ‘fixed license fee’ model.
  • It is basically the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
  • It is divided into spectrum usage charges and licensing fees that are fixed between 3-5% and 8% respectively.

Source: EPIC January 2022

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