Declining telecom revenue may hit government revenue collection : Minister

Declining telecom revenue may hit government revenue collection : Minister

Declining telecom revenue may hit government revenue collection : Minister
Declining revenue of telecom operators may hit the government's revenue collection from telecom services in form of licence fee and spectrum usage charges, Union Telecom Minister Manoj Sinha said on Wednesday.

The telecom sector witnessed a sharp decline in revenue in the second half of 2016-17, the Minister said in Lok Sabha adding that government held a meeting with telecom firms and major banks to discuss about the financial stress in the sector.

"The revenue decline in the second half of financial year 2016-17 was mainly concentrated in the last quarter of the year. The declining tariff in the sector led to an adverse impact on revenue. The License Fee has declined in Q3 (October-December) and Q4 (January-March) of financial year 2016-17," Sinha said.

As per the data shared by Sinha, at the end of first quarter government collected licence fee of Rs 3,975.66 crore, Rs 3,584.04 in second, Rs 3,452.13 crore in third and Rs 2,663.29 crore in the last quarter.

Operators pay 8 per cent of their telecom services revenue as licence fee to the government.

The minister also said that government had constituted an inter-ministerial group (IMG) to discuss the financial stress in the sector and other issues. The panel has to suggest policy reforms and strategic interventions for the telecom sector, he said.

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