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Government's License Fee Collection from Telecom Service Providers Increased by 8.23 Percent YoY

CIO Insider Team | Monday, 12 February, 2024
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The government's license fee collection from telecom service providers increased 8.23 percent year-over-year (YoY) to Rs. 5,326 crore, according to the most recent Trai data, despite a 40 percent decline in spectrum usage charge up to Rs. 836 crore in the September 2023 quarter.

Operators' gross revenue (GR) decreased by 1.22 percent to Rs.82,741 crore during the reporting quarter, but adjusted gross revenue (AGR) climbed by 7.43 percent (YoY) to Rs.66,583 crore, according to the performance indicator report provided by regulator Telecom Regulatory Authority of India (Trai).

"On a YoY basis, GR decreased by 1.22 percent, ApGR (applicable gross revenue) increased by 6.74 percent, and AGR increased by 7.43 percent in the quarter ended September 2023," the report said.

With a 9.12 percent YoY increase, Reliance Jio has the highest AGR of Rs.24,217.13 crore.

During the quarter, Bharti Airtel recorded the greatest annual growth rate (AGR) of 10.88 percent, with Rs.19,840.84 crore.

"The License Fee (LF) increased from Rs.5,246 crore for the QE (quarter ended) June 2023 to Rs.5,326 crore for the QE September 2023. The quarterly and the Y-O-Y rates of growth in license fees are 1.53 and 8.23 percent, respectively, in this quarter," the report said.

During the reporting quarter, Vodafone Idea, which is heavily indebted, saw a nearly unchanged AGR of Rs.7,507.65 crore.

The AGR of state-owned BSNL increased by 1.93 percent to Rs.1,966.44 crore, while the AGR of MTNL decreased by 16.35 percent year over year to Rs.168.69 crore.

Spectrum use charges (SUC) and license fees are the two ways the government determines how much money it will get from the telecom industry.

Operators' gross revenue (GR) decreased by 1.22 percent to Rs.82,741 crore during the reporting quarter, but adjusted gross revenue (AGR) climbed by 7.43 percent (YoY) to Rs.66,583 crore, according to the performance indicator report provided by regulator Telecom Regulatory Authority of India (Trai).

81.67 percent of the overall AGR was accounted for by access service providers or mobile operators, such as Vodafone Idea, Bharti Airtel, and Reliance Jio.

Mobile carriers made licensing fee payments of Rs.4,350.67 crore and SUC payments of Rs.831.49.

The government has eliminated SUC on any spectrum acquired through auctions held after September 15, 2021, as part of telecom reforms.



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