SC rejects telcos' definition of AGR: What does it mean for the incumbents?

The apex court in its verdict, has prescribed new definition of adjusted gross revenue and held that all revenue accruing from telcos constitute to AGR.

Shares ot telecom companies, Bharti Airtel and Vodafone-Idea, came under heavy pressure in the afternoon trade on Thursday after the Supreme Court (SC) rejected telcos' definition of adjusted gross revenue (AGR). The apex court, on the other hand, upheld the Department of Telecommunications (DoT)'s view that other than termination fee and roaming charges, all revenue accruing to telcos are to be included in AGR. 

In its verdict, the apex court has prescribed the new definition of AGR and held that all revenue accruing from telcos constitute to AGR.

Reacting to the verdict, the stocks of incumbent telcos plunged. Shares of