Know what really AGR is and what's its significance
The government in 1999 gave an option to the telecom sector licensees to migrate to the revenue sharing fee model. Under this, mobile telephone operators were required to share a percentage of their AGR with the government as annual license fee (LF) and spectrum usage charges (SUC). AGR is then computed after allowing for certain deductions spelled out in the license agreements. The LF and SUC were set at 8%.