Adjusted Gross Revenue (AGR)

Adjusted Gross Revenue Latest News

The Supreme Court recently rejected Vodafone Idea and Bharti Airtel's review petitions to correct errors in Adjusted Gross Revenue dues calculations. 

About Adjusted Gross Revenue

• AGR is a metric used to determine the revenue that telecom operators must share with the government in the form of spectrum usage charges or licensing charges. 
• Under this mechanism, telecoms are required to share a percentage of AGR with the Department of Telecommunications.
• Calculation of AGR and Controversy:
  • As per the Dept of Telecom, the AGR calculations should incorporate all revenues earned by a telecom company. This also includes revenues from non-telecom sources such as deposit interests and sale of assets.
  • The companies, however, are of the view that AGR should comprise the revenues generated from telecom services only, and non-telecom revenues should be kept out of it.
• In October 2019, the Supreme Court widened the definition of AGR to include the government's view.
• The Supreme Court ordered it to include all revenues, except for termination fees and roaming charges, as a part of the AGR.

Adjusted Gross Revenue FAQs

Q1. What is AGR in the telecom industry?

Ans. It represents the revenue telecom operators must share with the government under their licensing agreements.

Q2. What is the gross revenue of telecom?

Ans. In the financial year 2024, the industry gross revenue of the telecom sector in India reached 3.36 trillion Indian rupees. 

Q3. Who is the largest telecom company by revenue?

Ans. As of 2024, China Mobile is the largest telecom company by revenue, generating approximately $140.5 billion.

Source: ET