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Adjusted Gross Revenue (AGR): Telecom and Rural Digital Connectivity

Adjusted Gross Revenue (AGR) is a core regulatory calculation mechanism used by the Department of Telecommunications (DoT) in India to levy statutory license fees and spectrum usage charges (SUC) on telecom operators. The AGR framework directly funds the Universal Service Obligation Fund (USOF / BharatNet), which finances rural optical fiber and 4G/5G mobile tower connectivity across Indian farming villages.

Last reviewed: 11 November 2026

Definition and Regulatory Framework of AGR

Under the National Telecom Policy, telecom service providers share a fixed percentage of their operational revenues with the government as annual license fees.

AGR constitutes the total revenue generated by a telecom licensee minus specific allowable deductions (such as pass-through charges paid to other telecom networks).

  • Gross Revenue: All revenues generated by telecom companies across core voice, data, interest, and non-telecom activities
  • Deductions Allowed: Roaming charges, access charges paid to other networks, and statutory sales tax/service tax
  • Statutory Levies: Telecom operators contribute an 8% license fee based on calculated AGR, alongside spectrum usage charges

Funding Rural Telecom and BharatNet via USOF

A substantial portion of the AGR license fee (typically 5% out of the 8% total fee) is routed directly into the Universal Service Obligation Fund (USOF).

USOF funds rural digital infrastructure, ensuring remote villages and agricultural communities receive high-speed internet connectivity.

  • BharatNet Project: Laying underground optical fiber cables to connect all 2.5 lakh Gram Panchayats with high-speed broadband
  • 4G Saturation Scheme: Installing thousands of solar-powered telecom towers in remote tribal and border villages
  • Digital Agriculture Services: Powers farmer access to PM-Kisan DBT portals, digital land records (Bhulekh), e-NAM mandis, and mobile banking

Impact on Farmer Access and Rural Agritech

Reliable mobile broadband backed by USOF funding has catalyzed India's rural digital transformation.

Farmers leverage high-speed data to access real-time mandi prices, satellite weather forecasts, and AI-driven agronomic advisory platforms.

  • Real-Time Mandi Access: Enabling farmers to compare live wholesale prices across nearby APMC markets before selling produce
  • Fintech Integration: Facilitates digital UPI payments, online KCC loan approvals, and instant DBT subsidy credit notifications
  • Agritech Solutions: Enables smartphone-based crop disease diagnosis, smart irrigation automation, and drone mapping

Official source

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Department of Telecommunications - Ministry of Communications ↗

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Common questions

What is Adjusted Gross Revenue (AGR) in Indian telecommunications?

AGR is the revenue base calculated by the Department of Telecommunications upon which telecom operators pay annual license fees and spectrum charges.

How does AGR fund rural internet and telecom connectivity?

A dedicated 5% of telecom license fees goes to the Universal Service Obligation Fund (USOF), which finances the BharatNet project and rural mobile towers.

Why is rural digital connectivity important for Indian farmers?

It enables farmers to check real-time mandi prices, verify PM-Kisan DBT payments, view digital land records, and access online agricultural advisory.

General guidance, not personal advice. For your farm, ask your local Krishi Vigyan Kendra or agriculture officer.

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