The Telecom Regulatory Authority of India (TRAI), on Thursday, recommended a uniform licence fee of 8 per cent of the adjusted gross revenue (AGR) for Internet service providers (ISP) licences. It also said that a minimum presumptive AGR for the purpose of licence fee shall be applicable on the existing ISPs holding the broadband wireless access (BWA) spectrum as applicable to the licensees who obtained access spectrum through competitive bidding.

Issuing recommendations on “Definition of adjusted gross revenue (AGR) in licence agreements for provision of Internet services and minimum presumptive AGR”, TRAI said revenue for the purpose of licence fee for ISP licences would include all types of revenue from Internet services, allowing only those deductions available for pass-through charges and taxes/levies, as in the case of access services, without any set-off for expenses.

Revenues from Internet services would also be included in the definition of AGR.

“For the existing ISPs who are holding BWA spectrum from the 2010 auction, the value of presumptive AGR shall be equal to 5 per cent of sum of the total bid amount by the licensee for the respective service area, as applicable to the licensees who obtained spectrum in the auctions conducted in November 2012 and March 2013,” the regulator added.

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