Press Information Bureau

Government of India

Ministry of Communications & Information Technology

28-December-2012 17:23 IST

The Telecom Regulatory Authority of India (TRAI) has today released a consultation paper on “Definition of Adjusted Gross Revenue (AGR) in License Agreements for provision of Internet Services and minimum presumptive AGR”.

TRAI received a reference from Department of Telecommunication (DoT) seeking TRAI’s recommendations under Section 11(1)(a)(ii) of TRAI Act, on the following:

The definition of AGR in the ISP License Agreements for provision of Internet Services, and amendment in the license(s) thereof, in the following categories:-

• ISP license(s) granted under 1998 guidelines (ISP Category Licence)

• ISP license(s) granted under 2002 guidelines and subsequently under 2007 guidelines (ISP-IT Category Licence)

Applicability of minimum presumptive AGR and value, if applicable, for BWA Spectrum holders under Internet Service/Access Service license(s), keeping in view the provisions of NIA of 3G/BWA spectrum auction and in case of other licenses with or without spectrum, including access service licenses.

Amendment in the “Format of Statement of Revenue and Licence Fee” to be reported by various categories of Internet Service Licensees and UAS Licensees.

Accordingly, this consultation paper has been issued to seek comments of the stakeholders on the above mentioned issues.

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MV/RK

Adjusted Gross Revenue definition refined for ISP licences, affecting minimum presumptive AGR and revenue reporting obligations. Definition and scope of Adjusted Gross Revenue (AGR) for Internet service licence agreements are proposed to be clarified for ISP Category Licence (1998) and ISP-IT Category Licence (2002/2007), with corresponding licence amendments. The paper examines applicability and level of a minimum presumptive AGR for BWA spectrum holders under Internet Service/Access Service licences in light of auction obligations, and proposes amendments to the 'Format of Statement of Revenue and Licence Fee' to standardise revenue reporting; stakeholder comments are invited.