SC issues notice to Vodafone Essar, Trai

The Supreme Court today issued notice to Vodafone Essar South and Telecom Regulatory Authority of India (Trai) on a petition filed by the Centre challenging the TDSAT's judgment relating to adjusted gross revenue for the purpose of levying licence fee.

The sector tribunal's ruling in August 2007 had excluded income from dividend and interest on savings, capital gains as well as benefits from foreign exchange from telecom companies' aggregate gross revenue for calculating licence fee to the government.

However, it had included income earned from telecom handsets given to subscribers bundled with their services in AGR in calculating licence fee. Besides, the rent earned from property, and the income from the sale or lease of telecom towers and dark fibre lines was included in cellular operators' AGR.

A bench headed by Justice Arijit Pasayat sought reply from Vodafone (formerly called Hutchison Essar South) and Trai.

Earlier, the apex court in November 2007 had issued notice to the Association of Unified Telecom Service Providers of India on a similar petition pending before it.

Under the National Telecom Policy, operators have to pay 15 per cent of their revenue to the telecom department as revenue share or licence fee under the AGR regime.

The TDSAT had passed the judgment on a petition filed by the Association challenging telecom regulator Trai's recommendations to include such kinds of income in AGR.

However, Vodafone had also challenged Trai's recommendations on March 7 last year, after the TDSAT had given its verdict on the issue.