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Government's revenue mop-up from telecom industry falls 22% in FY18

07 Jan 2019 Evaluate

The government's revenue mop-up from the telecom industry declined by nearly 22 percent in the financial year 2018, mainly due to a decline in earnings of service providers from sale of services. The government collects license fee and spectrum usage charge (SUC) as a percentage of revenue earned by telecom service providers from sale of telecom services.

The adjusted gross revenue (AGR) earned by companies from the sale of telecom services dropped 18.62 percent to Rs 1,30,844.9 crore in FY18 as compared to Rs 1,60,787.9 crore in the previous fiscal. This resulted in lower licence fees and SUC for the government.

Besides, the government's revenue from licence fee declined 18.12 percent to Rs 10,670.6 crore in FY18, from Rs 13,032.9 crore in FY17. The SUC, which is calculated based on quantum of radiowaves allocated to mobile operators, dipped by over 29 percent to Rs 4,983.75 crore in 2017-18 from Rs 7,048 crore in the preceding financial.  

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