ForumIAS LATEST
- 04 June | MGP Strategy Series | GS Paper 4 (Ethics) with AIR 7 A.R. Rajah Mohaideen Click Here to register for the session →
- 04 June | GS Advance Program begins from 4th June 2026 | First 2 classes open to all Click Here to register for the event →
- 05 June | MGP Strategy Series | GS Paper 3 Strategy Session with AIR 406 Mannat Luthra Click Here to register for the session
- 06 June | Open Orientation on Essay Guidance Program (EGP 2026) Click Here to register →
- 07 June | Open Orientation for Current Affairs for Mains 2026 Click Here to register →
- 07 June | Sociology Optional Strategy Session with AIR 10 Ujjwal Priyank Click Here to register →
Contents
What is the news?
SC dismisses plea by Bharti Airtel, Vodafone Idea seeking direction for correction of errors in Adjusted Gross Revenue (AGR) calculation.
What is the issue?
- In 2005, the Cellular Operators Association of India (COAI) challenged the government’s definition for AGR calculation. The Supreme Court in 2019 upheld the definition of AGR as stipulated by the DoT.
- Further, The Supreme Court insisted that telecom operators could pay their adjusted gross revenue (AGR) dues to the Department of Telecommunications (DoT) over the next 10 years starting April 1,2021.
- Consequently, Bharti Airtel Ltd and Vodafone Idea Ltd had moved the apex court seeking directions to the DoT to recalculate AGR dues, citing “mathematical errors” in the calculation of the outstanding amount by the department.
- However, recently, the Supreme Court (SC) dismissed the applications of the two telecom companies.
What is AGR?
Adjusted Gross Revenue (AGR) is the annual license fee (LF) and spectrum usage charges (SUC) that telecom operators are charged by the Department of Telecommunications (DoT).
How is it calculated, and what’s the contention?
As per DoT, the charges are calculated based on all revenues earned by a telco – including non-telecom-related sources such as deposit interests and asset sales. On the other hand, telecoms insist that AGR should comprise only the revenues generated from telecom services.
