DoT moves SC against Sun Direct on AGR issue

New Delhi: The Centre has moved the Supreme Court claiming that Sun Direct TV, a venture promoted by the Maran family, should pay an annual licence fee as per the licence agreement.

The issue pertains to the manner in which the “gross revenue” is to be calculated for the purpose of the annual licence fee from DTH licensees, including the South-based Sun TV group firm.

The DoT has challenged the Telecom Disputes Settlement and Appellate Tribunal’s (TDSAT) that had excluded income from non-licenced activities for the purpose of calculating licence fee.

According to the government, as the matter relating to adjusted gross revenue (AGR) is pending before the apex court, the channel is required to pay licence fee as per the licence agreement and not as per the tribunal’s decision.

Besides, the Centre being the licensor and having exclusive privilege to grant licence is entitled to obtain such a share in revenue earned by the licensees which would come within the purview of the definition of AGR contained in the licence, DoT said in its appeal.

A batch of petitions filed by DoT against various telecom service providers, including Cellular Operators Association of India, Bharati Cellular, Hutchinson, IDEA celluar, VSNL, Tata Teleservices and others, are pending before the apex court.

TDSAT had said that the direct-to-home (DTH) services operator is required to pay licence fee on the basis of AGR which should mean total revenue as reflected in the audited accounts from the operation of DTH as reduced by subscription fee charges passed on to the pay channel broadcasters, sale of hardware included integrated receiver decoder required for connectivity at the consumers’ premises and service/entertainment tax actually paid to the government if gross revenue had included them.

Source: The Financial Express

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