Telecom Firms Owe Over Rs 92,000 Crore as Licence Fees Till Date, Centre Tells SC
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In an affidavit filed in the top court, Department of Telecom said that as per calculations, Airtel owes Rs 21,682.13 crore as licence fee to the government. Dues from Vodafone totaled Rs 19,823.71 crore while Reliance Communications owed a total of Rs 16,456.47 crore.
- Last Updated: July 29, 2019, 20:36 IST
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New Delhi: Leading private telecom firms like Bharti Airtel, Vodafone and state-owned MTNL and BSNL have pending licence fee outstanding of over Rs 92,000 crore till date, the Centre has told the Supreme Court.
In an affidavit filed in the top court, Department of Telecom (DoT) said that as per calculations, Airtel owes Rs 21,682.13 crore as licence fee to the government. Dues from Vodafone totaled Rs 19,823.71 crore while Reliance Communications owed a total of Rs 16,456.47 crore, DoT said.
BSNL owed Rs 2,098.72 crore while MTNL owed Rs 2,537.48 crore, it said. The total amount which has to be recovered from all the telecom firms accrues to Rs 92,641.61 crore as on date, it said.
As per the New Telecom Policy, telecom licensees are required to share a percentage of their Adjusted Gross Revenue (AGR) with the government as annual License Fee (LF).
In addition, mobile telephone operators were also required to pay Spectrum Usage Charges (SUC) for the use of radio frequency spectrum allotted to them.
Telecom operators had moved the top court against the Telecom Disputes Settlement and Appellate Tribunal's (TDSAT) order which ruled that certain non-telecom revenues like rent, profit on sale of fixed assets, dividend and treasury income would be counted as adjusted gross revenue (AGR), on which licence fee would have to be paid to the government.
The TDSAT order had exempted a large number of streams from the definition of AGR, like capital receipts, bad debt, distribution margins to dealers, forex fluctuations, sale of scrap and waiver of late fee.
The telecom tribunal also said revenue from non-core sources such as rent, profit on sale of fixed assets, dividend, interest and miscellaneous income must be included while computing a carrier's AGR, dealing a setback to telecom operators who would have to shell out more towards licence and spectrum usage fees.