Explained: Why telecom companies may have to pay up Rs 92,000 crore

The Supreme Court has upheld the definition of Adjusted Gross Revenue (AGR) calculation as stipulated by the Department of Telecommunications (DoT). This would lead tvideo telecom companies paying up as much as Rs 92,642 crore to the government, over half of which are owed by Airtel and Vodafone alone.

Terming the issues raised by telcos with respect to AGR as ‘frivolous’, the SC held that not only the original charges, but principal interest and penalties on delayed payments would also be applicable on the service providers.

AGR is the usage and licensing fee that telecom operators have to pay the DoT.

In this special video, Reema Tendulkar, Associate Editor at CNBC TV18, explains what the issue is all about.