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Indian Telecom’s AGR Tangle – Who is at fault?

The AGR case highlighted systemic missteps and prolonged delays involving DoT, TRAI, and the judiciary, leading to a significant financial burden on telecom operators while questioning the fairness of penalties and exclusions for PSUs.

Parag Kar by Parag Kar
14 Sep, 2020 - Updated On 9 Apr, 2025
in AGR Issue, Telecom Judgements
Reading Time: 9 mins read
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On 1st Sept 2020, the historic AGR case, which had rattled the telecom sector for the past two decades, concluded with the SC judgment. The overall impact on the sector is a staggering Rupees One Lakh Sixty-Nine Thousand Crores (22.8 billion USD). It looks hilarious, that it took such a long time to settle something so fundamental – the basis of the settlement of 1999 between the government and the telecom operators. Lot has been written about it, but in this note, I plan to point to key mistakes that were committed (by all concerns) – leading to this mess.

Mistake No.1 – DoT had deliberately left the key term (definition of revenue) open in their proposed package for migration (from fixed license fees to revenue share) dated 22nd July 1999 [clause iii]. By doing so they had set the expectation that they will decide the same later based on a fair consultation process run by TRAI.

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Tags: AGR CaseDoTfinancial burdenIndian Telecom IndustryPenaltiespolicy mistakesPSUsregulatory issuesRevenue ShareSpectrum PricingSupreme Court JudgmentTelecom LitigationTelecom OperatorsTelecom SectorTRAI
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