DoT amends AGR definition to remove non-core items

NEW DELHI: The Department of Telecommunications (DoT) has removed several non-telecom income items, such as those from property rents, dividends and interests, from the calculation of adjusted gross revenue (AGR). The move, applicable from October 1, would reduce future payment obligations of carriers to the government in the form of levies such as licence fees, thus helping improve the finances of the debt-laden sector.

In a note issued late Monday night, the DoT introduced the concept of the applicable gross revenue (ApGR), which is arrived at by removing all the non-telecom revenues earned by telcos from their gross revenue (GR). Analysts say non-core items currently make up around 10% of a telco’s total revenue.