India Expects 30% Revenue Rise From Telecom Sector

- Advertisement -
- Advertisement -

This fiscal year, the sector has already seen a revenue rise of 44% YoY from ₹648.35 billion in FY23.

The Indian government expects to generate ₹1.2 trillion in revenue from the telecom sector for the fiscal year 2025, as stated in the interim budget released on Thursday. This forecast represents a 30% increase from the revised revenue target of ₹935.41 billion for FY24, and is expected to be driven by an upcoming spectrum auction and higher adjusted gross revenue (AGR) payments from telecom companies in FY25.

Part of this revenue increase is expected to come from a spectrum auction planned for later this year. Union Electronics and IT Minister Ashwini Vaishnaw stated that this auction would be limited, focusing on spectrum not sold in the previous year’s extensive auction, as the government aims to conduct auctions annually to fill any gaps.

- Advertisement -

This fiscal year has already seen a significant rise in sector revenue, including AGR dues and spectrum licensing fees, climbing 44% year-on-year (YoY) from ₹648.35 billion in FY23. 

With 92% market share dominated by Bharti Airtel, Reliance Jio Infocomm and Vodafone-Idea, the telecom sector will see major growth in FY25. This includes potential demand from enterprises for industrial 5G and IoT services and the start of satellite-based communication services following satellite spectrum allocation by the government.

The telecom sector’s revenue in FY26 could boost further when the moratorium on spectrum acquisition payment rounds for telecom operators ends in September 2025. Prepayments from telecom operators could contribute around ₹100 billion in FY25, although some of this amount may be offset by prepayments made in FY24.

Despite calls from telecom operators for relief from Universal Service Obligation Fund (USOF) dues and a reduction in licence fees among other concessions, the government’s revenue projection suggests that industry fees will remain in place.

Industry experts have expressed surprise at the higher-than-expected revenue forecast. Prashant Singhal of EY Global and other analysts believe that the projection hints at another spectrum auction for 5G, as previously indicated by the telecom minister. They are, however, sceptical about 5G or satellite communications (satcom) spectrum allocation’s contribution to this revenue increase.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Exclusive

Six Steps To Building Better Business Assets

0
In the journey of asset-building, solving good problems trumps battling bad ones. Dive into six essential steps for building and leveraging effective assets—the game-changer...

India’s Solar Capacity Installation Down By 44.1%, Delayed Projects To Add To 2024 Installations

0
Large-scale solar installations saw a notable decline of 50.8% YoY to 5.8 GW from 11.7 GW in 2022, constituting 77.2% of the annual capacity...

Infineon Technologies Sells Manufacturing Sites To ASE

0
This strategic move aims to balance in-house and external manufacturing for profitable growth, leveraging mutual synergies between the companies to drive industry growth and...

Buzz

Bajaj Auto And Magna Increase Their Ownership In Yulu

0
Returning investors Bajaj Auto and Magna have invested $19.25 million in shared electric mobility company Yulu as part of a Series B round of...

BIWIN And Lenovo Collaborate To Launch SSDs In India

0
Lenovo SSDs deliver high-performance storage solutions catering to both consumer and business needs. BIWIN has partnered with Lenovo to introduce the latest Lenovo-branded SSDs in...

IIT Guwahati And Edurade Launch India’s Largest Remote Pilot Training Program

0
This first-of-its-kind training program is specifically designed for Junior Commissioned Officers (JCOs) and other officers, aiming to modernise the operations of the armed forces.  The...

Important Sectors

India’s Solar Capacity Installation Down By 44.1%, Delayed Projects To Add To 2024 Installations

0
Large-scale solar installations saw a notable decline of 50.8% YoY to 5.8 GW from 11.7 GW in 2022, constituting 77.2% of the annual capacity...

Bajaj Auto And Magna Increase Their Ownership In Yulu

0
Returning investors Bajaj Auto and Magna have invested $19.25 million in shared electric mobility company Yulu as part of a Series B round of...

IIT Guwahati And Edurade Launch India’s Largest Remote Pilot Training Program

0
This first-of-its-kind training program is specifically designed for Junior Commissioned Officers (JCOs) and other officers, aiming to modernise the operations of the armed forces.  The...

Servotech Secures Order For 1500 DC Fast EV Chargers From HPCL And OEMs

0
Servotech Power Systems Ltd. secures a significant order for 1500 DC fast EV chargers from HPCL and other OEMs, valued at 102 crores, to...

CIL Announces 3GW Solar Projects, Aims For 5GW RE Addition

0
CIL is laying the groundwork for its 5 GW renewable energy goal. Coal India Limited (CIL) has announced its plans to set up 3 gigawatts...

Manufacturing

Applied Ventures Funds VVDN Technologies

0
The investment demonstrates Applied Ventures' dedication to promoting innovation, collaboration, and entrepreneurship within the semiconductor and electronics manufacturing sectors. Applied Ventures, LLC, the venture capital...

Haryana EV-CO To Manufacture L3, L5 EVs At New Plant

0
The EV maker is self-funded and operates a modern manufacturing facility with cutting-edge technology and equipment. It specializes in producing two and three-wheelers, with...
Sona Comstar

Sona Comstar: First Indian Auto Supplier With PLI Certification

0
Sona Comstar, a leading EV traction motor manufacturer in India, receives PLI certification for its electric two-wheeler traction motor. Sona BLW Precision Forgings, commonly known...

Indian Manufacturers To Get Chinese Mobile Production Orders

0
Dixon has secured an order from Oppo for making phones, with an order size of around 5-6 lakh units per month.  Chinese firms have finally...

VinFast To Begin Construction Of TN Factory On Feb 25

0
The collaboration between VinFast and the Tamil Nadu Government commenced with the signing of a Memorandum of Understanding (MoU) on January 6, 2024. This...