Telecom Quarter Review

Telecom industry body COAI on Thursday sought abolition or reduction of AGR-related fees for telcos at the earliest and pitched for lowering licence fee to 0.5-1 per cent of gross revenues. COAI argued that with the separation of spectrum from the license and its assignment at market price, the justification for imposing licence fee had ceased to exist long back. The license fee should "at best" cover the cost of administration of the license only, which is around 0.5 per cent to 1 per cent of the gross revenues, instead of the 8 per cent paid currently. COAI, whose members include Reliance Jio, Bharti Airtel and Vodafone Idea, said payments charged on the basis of the AGR (Adjusted Gross Revenue) from telcos, ends up being a "double whammy" for players, who, as it is, incur huge investments towards procuring the spectrum. "It is evident that Telecom Service Providers (TSPs) buy the Spectrum for utilisation through transparent auction processes, paying a substantial amount for ...

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