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

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The revenue of 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

The revenue mop-up of the government of India from telecommunication sector has declined by around 22 per cent in the financial year 2017-18, due to a drop in the earnings of telecom service providers from the sale of services, said Union Telecommunication Minister Manoj Sinha.

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

“Adjusted gross revenue (AGR)-based SUC receipts have declined due to declining AGR,” Sinha said in a written response to a question in the Rajya Sabha.

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Decline in AGR

In the fiscal of 2017-2018, 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, thus resulting in lesser SUC and licence fees for the government.

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.

The SUC, calculated on the basis of quantum of radiowaves allocated to telecom operators, 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, as per the data shared by telecommunication minister.

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