Telecom Revenue Slips 7%, Licence Fee Collections Down By Over 10%: TRAI
A man sits talking on his mobile phone in Amritsar, India. (Photographer: Brent Lewin/Bloomberg)  

Telecom Revenue Slips 7%, Licence Fee Collections Down By Over 10%: TRAI

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Gross revenue of telecom operators slipped 7.13 percent in 2018, while licence fee and spectrum charges that the government collects from them fell 10.29 percent and 17.7 percent, respectively, during the year, according to the Telecom Regulatory Authority of India.

The adjusted gross revenue earned by companies from sale of telecom services dropped over 10 percent to Rs 1.44 lakh crore during 2018 from Rs 1.60 lakh crore in 2017, according to the TRAI’s telecom services performance indicator report for 2018, which was released on Wednesday.

"Gross revenue (GR) declined from Rs 2,55,655 crore in 2017 to Rs 2,37,417 crore in 2018 with yearly decline rate of 7.13 percent. AGR also declined from Rs 1,60,814 crore in 2017 to Rs 1,44,446 crore in 2018 with yearly decline rate of 10.18 percent," it said.

Gross revenue includes installation charges, sale proceeds of handsets (or any other equipment), interest, dividend, value-added services, access or interconnection charges, roaming charges, revenue from infrastructure sharing, without any set-off for related item of expense.

Also read: Only Reliance Jio Added Active Users In July, TRAI Data Shows

Spectrum usage charges was 17.74 percent lower at Rs 4,186 crore in 2018, while licence fee collections fell 10.2 percent to Rs 11,641 crore.

"Access services contributed 71.19 percent of the total AGR of telecom services. In access services, GR, AGR, license fee and spectrum usage charges declined by 8.88 percent, 16.13 percent, 16.20 percent and 17.82 percent, respectively, in 2018 over 2017," it said.

Giving a break-up of the individual operators-wise AGR from access services, the report showed that Bharti Airtel had experienced 26.95 percent drop year-over-year, Vodafone (8.12 percent), and Idea (massive 65.61 percent). Vodafone India and Idea Cellular merged their operations in August last year.

The AGR for Reliance Jio on this parameter was a staggering 316.5 percent higher at Rs 31,097 crore in 2018, the report showed.

"Public sector undertakings share in the access AGR of telecom services is 9.66 percent for the year 2018 as compared to 10.23 percent in the previous year," it said.

Also read: TRAI Releases Consultation Paper On Issues Related To Interconnection Regulation

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