Trai submission on AGR exclusions soon

The Telecom Regulatory Authority of India (Trai) will give its final recommendations to the Telecom Disputes Settlement and Apellate Tribunal (TDSAT) on the issue of excluding non-telecom activities from the adjusted gross revenue (AGR) by August 31.

The regulator is also finalising its recommendations on third generation (3G) mobile spectrum. The spectrum would be issued keeping in mind that the service was affordable, provided a level playing field and was technologically neutral, sources said.

Both GSM and CDMA operators have differences on the allocation of 3G spectrum in the 1,900 mhz. Trai's recommendations on AGR will also include the department of telecom's (DoT) views on why Trai's earlier recommendations, about not including non-license activities in the AGR, were rejected by the department.

Cellular Operators Association of India (COAI) and the Association of United Service Providers of India made presentations to Trai last week, listing various activities to be excluded from AGR.

The move follows TDSAT's recent judgment that the total gross revenue should be from licensed activities only. The tribunal had sought recommendations from Trai on the issue with inputs from operators and the DoT's views on rejecting Trai's earlier recommendations to get a comprehensive view.

At present, operators pay between 6-10 per cent of the AGR as licence fee, depending on the circle which includes revenues from non-licence activities since 1999.

The tribunal had refrained from taking a decision on the matter at this stage as there had been no effective consultation with Trai and had, therefore, sent the matter back to Trai.

The tribunal said, "Operators will place before TRAI their contentions in regard to the various components of AGR and TRAI, after hearing the government's side on the issue, will send its recommendations to the tribunal preferably within three months.'