The Telecom Regulatory Authority of India has issued a consultation paper on 'Definition of Revenue Base (AGR) for the Reckoning of Licence Fee and Spectrum Usage Charges'. The consultation paper is aimed at reviewing the definition of gross revenue (GR) and the permissible deductions to arrive at adjusted gross revenue (AGR) in the context of changes in the National Telecom Policy 2012.

The concept of AGR was introduced after government moved from charging fixed licence fees to revenue-sharing basis in 1999. Since then, the government has reduced licence fee from around 15 per cent to about 8 per cent at present. The regulator has asked industry stakeholders to give their views on the issues pertaining to the changes made in the licensing regime, the transition from the administrative allocation regime towards market-determined prices for spectrum, and the conclusion of tenure of many licences.

The regulator also invited comments on the need to review or revise the definition of GR and AGR in the different licences and the guiding principles for designing the framework of the revenue sharing regime. The stakeholders have also been asked to provide views on whether the rate of licence fee be reviewed instead of changing the definitions of GR and AGR, especially with regard to the component of Universal Services Obligation Fund levy, in the interest of simplicity, verifiability, and ease of administration.

The stakeholders can send their written comments by September 1, 2014 and counter comments by September 8, 2014.