Licence fee should be based only on telecom services of telcos

NEW DELHI: Telecom tribunal TDSAT on Friday granted a major relief to all private telecom operators by redefining Adjusted Gross Revenue (AGR) and said that revenues arising only from telecom services should be included for the purpose of levying licence fee.

"We have no difficulty in accepting the arguments of the petitioners (AUSPI) that it can only be from the licensed activity only," said Justice N Santosh Hegde, Chairman of the Telecom Disputes Settlement and Appelate Tribunal in his 45-page order.

It also remanded telecom regulator TRAI and directed the DoT and the Government of India to produce the material relied by it while rejecting the recommendations made by it.

"TRAI shall hear the government as well as the licensees (telecom companies) and consider the matters," said the TDSAT directing TRAI to conduct a public hearing.

It also directed it to submit its report within three months. The TDSAT also slammed the DOT for rejecting the advice of telecom regulator TRAI on AGR, which is mandatory.

"There has not been proper and effective consultation... DoT has not given due weightage while considering the recommendation of the TRAI... It is mandatory under the TRAI Act," TDSAT said.

It also observed that in a letter written by the Comptroller and Auditor General of India (CAG) in 1999 it had also expressed his concern regarding the correctness of the fee and DoT paid no heed to it.