The Telecom Regulatory Authority of India (TRAI) on Friday sought inputs from stakeholders on defining the components that should be considered as the revenue of Internet service providers (ISP), including 4G spectrum holders.
“Stakeholders are requested to give their comments on definition of AGR (adjusted gross revenue) for all three categories of ISP licences,” TRAI said in a consultation paper.
The government, at present, imposes a licence fee on AGR. The regulator has fixed January 18, 2013 as last date for submitting comments on around 45 points raised in the consultation paper and January 25 for counter comments.
The Department of Telecommunications (DoT) amended the ISP licence on June 29 and would impose a uniform licence fee of 8 per cent from April 1, 2013 on AGR.
The DoT has sought TRAI’s recommendation on minimum presumptive AGR, which is a new format, and value that can be applicable for BWA (Broadband Wireless Access) spectrum holders under Internet service and access service licenses, keeping in view the agreement that it had with winners of 3G and BWA spectrum auction.
On the introduction of a new form of AGR, TRAI said some service providers have not started their operations even after the lapse of sufficient time from the date they were issued licences.
Thus, they are not generating any revenue which is resulting in loss of revenue for government as well.
The new concept of presumptive AGR is floated to ensure that service providers “make sincere efforts in establishing network and start service at the earliest, a minimum licence fee and spectrum usage charges based on presumptive AGR may be considered.”