Govt expects to net Rs1.2 lk cr from communication in FY25

The government expects to garner Rs 1.20 lakh crore from communication services in FY24-25 as it looks to surpass the budgeted target for the current fiscal.

In the interim budget presented Thursday, the government looks to generate Rs 1,20,267.31 from communication services in FY24-25 by way of license fees and spectrum charges from the telecom players. The government, though, has not specified the receipts from auction, in the overall revenue target from the communication sector.

For FY 23-24, the revenue target has been revised upwards to Rs 93,541.01 crore, primarily due to prepayments by telcos for past spectrum auction instalments. Recently Airtel paid Rs 8,325 crore for the spectrum acquired in the 2015 auction.

As per budget documents, receipts under ‘Other Communication Services’ mainly relate to the license fees from telecom operators and receipts on account of spectrum usage charges. Department of Telecommunications (DoT) collects recurring licence fees from various telcos licensed by it. The licence fee is levied at 8% of the adjusted gross revenue (AGR).

For telecom networks licenced for captive use, licence fee is levied at fixed rates depending upon the number of terminals, channels or networks capital cost. In addition, a one time entry fee is also collected from the new operators.