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DoT clarifies: Telecom companies need to pay fee only on core activities, ET Telecom

Department Of Telecommunications: “Scope of license clause in the license agreement defines services which can be offered under the license. All activities covered under the scope of license will be classified as telecom activities,” DoT said in its clarification to clear doubts around interpretation. The industry had sought clarification on the phrase “revenue from operations other than telecom activities/operations,” since it is not defined in the license agreement.

telecom companies: DoT clarifies: Telecom companies need to pay fee only on core activities

The latest clarification brings big relief to a debt-laden industry as carriers need to pay 8% of AGR as license fee, experts said. They estimate that roughly 10% of an operators overall revenue comes from non-telecom activities. After the announcement of telecom reforms in September 2021, the government had notified that non telecom revenue would be excluded from the definition of AGR from October 1, 2021.

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