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2 min read | Updated on September 19, 2024, 15:18 IST
SUMMARY
Adjusted gross revenue is the basis for revenue sharing between telecom operators and the government. It determines the licensing and spectrum usage fees that operators must pay. The primary contention has been over the definition of AGR.
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Immediately after the court verdict, shares of Vodafone Idea and Indus Towers nosedived. Photo: ANI
Immediately after the court verdict, shares of Vodafone Idea and Indus Towers nosedived.
Last seen, Vodafone Idea (Vi) was trading nearly 20% lower at ₹10.33 apiece on the BSE. Indus Towers tanked 10% to ₹384.80 on the BSE. Bhart Airtel, on the other hand, was trading 0.89% higher at ₹1,667.40.
Adjusted gross revenue is the basis for revenue sharing between telecom operators and the government. It determines the licensing and spectrum usage fees that operators must pay. The primary contention has been over the definition of AGR.
Telecom companies argued that it should only include core telecom revenues. While the DoT insisted it should encompass all revenue, including from non-telecom services.
In October 2019, the Supreme Court ruled in favour of the Department of Telecommunications (DoT), ending a 14-year legal battle and significantly increasing the financial liabilities of telecom operators. The judgment led to massive dues, with Airtel and Vodafone Idea owing more than ₹90,000 crore combined.
The Supreme Court, however, ruled that the dues must be paid over a 10-year period, with 10% upfront by March 2021 and the remainder to be paid annually until 2031.
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