The Department of Telecommunications (DoT) is considering returning performance bank guarantee submitted by Reliance Jio Infocomm Limited (RJIL) for its erstwhile pan-India internet service provider (ISP) licence. However, the department is likely to hold back its financial bank guarantee till the company clears outstanding dues linked to its ISP licence.

DoT had approved RJIL‘s migration from ISP to a unified licence in October 2013. Following this, RJIL had sought return of its bank guarantees submitted for its ISP licence.

DoT has not yet finalised RJIL’s dues including licence feesas the definition of adjusted gross revenue (AGR) under an ISP licence is not yet finalised. The department is yet to take a final decision on the Telecom Regulatory Authority of India’s (TRAI) recent recommendations of fixing the ISP’s licence fee at eight per cent of the AGR.

In May 2014, TRAI had recommended that the AGR for the purpose of computing ISP licence fees include all forms of revenue from internet services, allowing only those deductions available for pass-through charges and taxes and levies as in the case of access services, without any set-off for expenses.