Centre targets 30% higher revenue from telcos in FY25

Revenue projection for FY25 points at consistent AGR collections, spectrum auctions

- Shouvik Das

44% Higher y-o-y inflow projected for FY24

₹10,000 cr Prepayments expected from telcos in FY25

The Centre aims to collect a revenue of ₹1.2 trillion from the telecom sector in FY25, it said in the interim budget on Thursday. This is about 30% higher than its revised revenue target of ₹93,541 crore from the sector for FY24. The markup in question is likely to be fuelled by an upcoming spectrum auction, as well as increased adjusted gross revenue (AGR) payouts from telcos in FY25.

The current fiscal marked a steep rise in revenue from the sector, which includes revenue from AGR dues, spectrum licensing, etc. Against a revenue of ₹64,835 crore in FY23, the government’s projected inflow for FY24 is 44% higher year-on-year (y-o-y).

"The telecom sector today is robust, and its growth and expansion of networks is visible to all of us. The usage of data has increased, and even though India has the most affordable telecom sector globally, the overall revenue that the government will earn from them, which is a fraction of what the telcos earn, will increase," union electronics and IT minister Ashwini Vaishnaw said at a post-Budget press conference on Thursday.

A part of this rise from the telecom sector will also be contributed by spectrum auction, which Vaishnaw said is being planned for later this year.