Vodafone Idea, which has been struggling to remain a going concern, calculated its remaining AGR dues at around Rs 21,500 crore after making a payment of Rs 7,800 crore. However, the Department of Telecommunications (DoT) had arrived at around Rs 58,000 crore as total AGR liability for Vodafone Idea. DoT’s calculation was around Rs 28,700 crore more than Voda Idea’s.
Why is there a difference in AGR calculations by the DoT and the telecom companies? Have the calculations been made public and what is the consensus on whose case is stronger (DoT/Tele Companies)?
The main dispute between the DoT and mobile operators is about the definition of AGR . The DoT argued that AGR includes all revenues (before discounts) from both telecom and non-telecom services. The companies claimed that AGR should comprise just the revenue accrued from core services and not dividend, interest income or profit on sale of any investment or fixed assets.
you can also refer the following sites to get into more details -
Vodafone Idea, which has been struggling to remain a going concern, calculated its remaining AGR dues at around Rs 21,500 crore after making a payment of Rs 7,800 crore. However, the Department of Telecommunications (DoT) had arrived at around Rs 58,000 crore as total AGR liability for Vodafone Idea. DoT’s calculation was around Rs 28,700 crore more than Voda Idea’s.
https://www.capitalmind.in/2020/08/the-curious-case-of-agr-dues/ Must read for everyone
And the Telcos lost
Why is there a difference in AGR calculations by the DoT and the telecom companies? Have the calculations been made public and what is the consensus on whose case is stronger (DoT/Tele Companies)?