'Unbundled handset, equipment sales outcome'

The Telecom Regulatory Authority of India (Trai) has come out with a list of activities that will be take into account for calculation of telecom operators' adjusted gross revenue (AGR).

Telecom operators calculate their revenue and pay revenue share to the government on the basis of AGR.

Revenue from discernible and standalone sale of handsets or telecom equipment not bundled with telecom service have been left out the purview of AGR.

Activities that will come under AGR include interest calculated on refundable deposit from subscribers, vendors credit, revenue from rent of towers and dark fibers, payment received on behalf of third parties, sale of handsets or telecom equipment if bundled with telecom service, receipt on account of ADC, and discounts and rebates given to customers.

The industry has been given six weeks' time to seek clarification on the issue. Sources say the industry may seek clarification on areas like vendor's credit and discounts given to customers, which were earlier waived from the calculation of AGR.

Items, which will not be part of AGR, also include income from dividend, capital gains unless receipts have come from telecom activities, gains from foreign exchange fluctuations and reversal of provisions.

Trai's recommendations follow a TDSAT directive in which the tribunal had asked the regulator to make fresh recommendations on the list of items to be included or excluded from AGR after consolations with operators and also incorporating the telecom department's view. In its last order, the tribunal had said only telecom activities would be part of the AGR.