Trai revises telcos earnings reporting format to reflect new definition from AGR, Telecom News, ET Telecom

Trai is revising telcos' earnings reporting format to reflect the new definition of AGR

Kolkata: The industry regulator has revised the format for submission of quarterly revenue and usage data by telcos and directed the latter to include their applicable gross revenue numbers (ApGR) required under the amended uniform license agreement.

Just over a year ago, the Department of Telecommunications (Point) had revised the definition of adjusted gross income (AGR), and introduced the concept of ApGR, which is determined by excluding all non-telecom revenue earned by telcos from their gross revenue (GR). Thereafter, AGR is determined based on ApGR by further removing more non-telecom service related items, including roaming revenue charged to other eligible/eligible telecommunications service providers.

“..the DoT has amended the Unified License Agreement, revising the format of ‘revenue statement’ and license fee” for access services and including the term ApGR before AGR, and accordingly the Authority has decided to revise the formats for filing the revenue and usage report,” de Telecom Regulatory Authority of India (Train) said Tuesday in a direction to all telcos.

It added that under its powers under section 13, read with sub-clause (i) of clause (b) of sub-section (1) of section 11, of TRAI Act, 1997, telecom service providers to submit quarterly reports on revenue and usage in the revised format.

Such reports, it said, should be filed within 45 days of the end of each quarter, with the exception of the fiscal fourth quarter, when the report can be filed within 60 days of the end of the quarter in the revised format for both wireless and fixed telephony. Services.

Regulatory levies such as license fees and spectrum usage charges (SUC) are paid quarterly on an AGR basis. Therefore, a lower AGR would mean lower payouts by telcos for such charges.

Telcos annually pay 8% of their AGR as license fees to the government. SUC is currently about 3-4% of AGR.

But at the end of June, the DoT abolished the 3% floor on SUC, which will greatly reduce future telecom outflows to this regulatory fee.

As spectrum adopted from recent 5G auction and will not attract any SUC later on, telcos’ total SUC payout is likely to drop to less than 1% of AGR.

“Trai has provided a comprehensive set of recommendations to the government on a favorable regulatory and policy framework to support successful and rapid roll-out of small cells and fiber using street furniture in all smart cities, other cities and towns, ports, airports, metro rails , industrial sites and estates, etc.,” Trai said.