The Department of Telecommunications (DoT) has sought Ministry of Finance’s opinion on the impact on telecom operators’ finances if proceeds of spectrum trading are included in their adjusted gross revenues (AGR). This comes after the Cellular Operators Association of India (COAI) and Association of Unified Telecom Service Providers of India (AUSPI) had approached DoT and the Ministry of Finance on this matter.

According to the industry bodies, the provision in the proposed spectrum trading guidelines by TRAI, for including trading revenues in AGR for the purpose of licence fee and spectrum usage charge (SUC) can deter spectrum trading and make spectrum trading transactions unviable.  Meanwhile, COAI and AUSPI have recommended that only the capital gains including sale proceeds from spectrum trading less the cost of acquisition may be considered for the purpose of licence fee and SUC.