Adjusted Gross Revenue (AGR) is 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, pegged between 3-5% and 8% respectively.
The charges are calculated based on all revenues earned by a telco – including non-telecom related sources such as deposit interests and asset sales.
The definition of AGR has been under litigation for 14 years. In 2005, Cellular Operators Association of India (COAI) challenged the government’s definition for AGR calculation.
However, DoT argued that AGR includes all revenues from both telecom and non-telecom services.
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