Q. Consider the following statements regarding Adjusted Gross Revenue (AGR):
1 It is the annual license fee (LF) and spectrum usage charges (SUC) that telecom operators are charged by the Department of Telecommunications (DoT).

2 It comprises of the revenues generated from telecom services and non-telecom revenues.

Which of the above statements is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Both statements are correct

What is AGR?

Adjusted Gross Revenue (AGR) is the annual license fee (LF) and spectrum usage charges (SUC) that telecom operators are charged by the Department of Telecommunications (DoT).

How is it calculated, and what’s the contention?

As per DoT, the charges are calculated based on all revenues earned by a telco – including non-telecom-related sources such as deposit interests and asset sales. On the other hand, telecoms insist that AGR should comprise only the revenues generated from telecom services.

Source: Article