Telcos to file fresh circle-wise petitions on AGR dispute

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) today asked telecom operators to file fresh, circle-wise petitions contesting the adjusted gross revenue (AGR) demands of the government toward licence fees within a period of three weeks.

The telecom tribunal has directed maintenance of status quo on the government's AGR demand till the issue has been settled. It had on December 15 asked the DoT not to force operators to pay their licence fees till the next date of hearing.

In addition to the direction to the telcos, the TDSAT bench headed by Chairman Justice SB Sinha directed the DoT to file replies to the petitions in the next three weeks and posted the matter for hearing on April 12.

The tribunal also asked the telecom operators to file a chart showcasing the year-wise consolidated demand in every circle. It also directed them to put together a list of common issues in their petitions on the AGR issue.

The Department of Telecommunications (DoT) and telcos are at odds over the components that make up AGRs, which are paid as licence fees for various telecom circles.

Service providers say that only the income from telecom services and excluding other income like interest on savings, dividends, bundling of handsets and others should be considered for the purpose. On the other hand, the DoT wants to consider the total income of the firms as AGR.

The TDSAT had on August 30, 2007, ruled that income from dividend, interest income on savings, capital gains, management consultancy and training, as well as gains from foreign exchange, should not be a part of AGR for paying revenue share or licence fee to the government.

This was challenged by the government before the Supreme Court. The Supreme Court on October 11 set aside TDSAT's order and asked it to decide on the issue of AGR and "pass fresh orders in accordance with law".