On 25th October 2021, the Department of Telecommunication vide File No. 820-01/2006-LR(Vol-II) Pt -2 has introduced amendments in Internet Service Provider (ISP) License agreement granted according to the guidelines published on 24.08.2007.
The existing clauses that have gone through the amendments and the changes made to them are given in this blog.
Part II of the Financial Conditions of the ISP License agreement gives a definition of the Gross Revenue that telecoms can elucidate as below:
Gross revenue includes revenue from the following sources:
As per the 18.2 of the Financial Conditions given in Part III of the ISP license agreement, Adjusted Gross Revenue is calculated by excluding the following from the Gross Revenue:
As per amendments, part II of financial conditions in the ISP license agreement now redefines Adjusted Gross revenue in addition to adding a new term – Applicable Gross Revenue
Definition of Applicable Gross Revenue: The applicable gross revenue will be equal to Gross revenue minus the revenue from the following sources:
Redefinition of Adjusted Gross Revenue: To calculate Adjusted Gross revenue, the DOT will now exclude the following from the Applicable Gross Revenue:
The goal of introducing these amendments is to make it easy for the telcos to pay their AGR dues. With the introduction of the new Applicable Gross Revenue, the license fee that the telcos have to pay is now far reduced. We will see the larger impact it has on the telecom industry in the future. For now, understand these amendments to better prepare your TSP.