Adjusted gross revenue

The revenue base on which Indian telecom operators pay licence fees and spectrum charges to the government.

Its definition was litigated for many years, and the eventual resolution imposed very large historical liabilities on the sector, reshaping its structure and its balance sheets.

For an analyst the principle matters more than the history. In a regulated sector the definition of the revenue base is itself a valuation variable, and a judgement can change it with market forces playing no part.

In this sector, regulatory risk is the main story.