Revenue of Government from Telecom Sector Drops 22 Per cent in 2017-18

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Revenue from licence fee has dropped by 18.12 in the 2017-18 fiscal as compared to previous financial year

The recent decline in the the sale of services which had dropped earnings of telecom service providers in the country.This is also affected in the revenue mop-up of the government of India from telecommunication sector and reduced by around 22 per cent in the financial year 2017-18. Union Telecommunication Minister Manoj Sinha has responded in to a question in the Rajya Sabha that adjusted gross revenue (AGR)-based SUC receipts have declined due to declining AGR.

Decline in AGR

In 2017-2018 fiscal year, the AGR of telecom sector in the country fell by 18.62 per cent to Rs 1.30 lakh crore as compared to Rs 1.60 lakh crore in the last financial year,resulted in lesser SUC and licence fees for the government.

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The revenue of the government from licence fee has dropped by 18.12 per cent to Rs 10,670 crore in the 2017-18 fiscal as compared to Rs 13,032.9 crore in the previous financial year.

SUC, calculated on the basis of quantum of radiowaves allocated to telecom operators.As per the data,which is declined by more than 29 per cent to Rs 4,983 crore in the fiscal of 2017-18 as compared to Rs 7,048 crore in the preceding financial year.

The government collects spectrum usage charge (SUC) and license fee as a percentage of telecom service providers’ revenue from the sale of telecommunication services.

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