After factoring in money from the anticipated spectrum auction, the government’s revenue from telecom services will be much greater than the prediction of Rs 52,806.36 crore given in the union budget, according to a top telecom department official. According to the budget paper, the government’s income forecast for the telecom sector has been reduced to Rs 52,806 crore for the coming fiscal year.
“Some people are paying in advance, and we expect this trend to continue now that a spectrum auction is being contemplated. It will be much higher, but we won’t be able to give any figures at this time because we don’t have any suggestions “K Rajaraman, the Telecom Secretary, told PTI.
The telecom income collection for the current financial year is likely to be higher than the budget forecasts of Rs 53,986.72 crore, at Rs 71,959.24 crore.
According to Rajaraman, the Department of Transportation has already received Rs 69,559 crore as of February 3.
License fees from telecom operators and receipts for spectrum usage charges, which are charged at a rate of 8% of their adjusted gross income, are included in the communication services receipts.
“We won’t be able to estimate 5G spectrum auction prices until Trai’s suggestions are out. There will be certain revisions to these recommendations “Rajaraman remarked.
The Telecom Regulatory Authority of India (Trai) is now finalizing its 5G spectrum pricing and allocation regulations proposals, which it is expected to publish in March.
Trai had previously recommended a starting price of Rs 492 crore per Mhz unpaired spectrum for 5G spectrum in the 3,300-3,600 Mhz range on a pan-India basis. Telecom providers interested in purchasing radio waves for 5G will have to pay a minimum of Rs 9,840 crore on a pan-India basis to purchase spectrum in the 3,300-3,600 Mhz medium frequency band. At the base price, the medium band spectrum should cost telecom operators only Rs 492 crore if their demands are met.
Telcos have urged that the basic price of spectrum in the higher frequency bands of 24.5 GHz to 29.5 GHz be set at 1% of the mid-frequency band’s base price.
Rajaraman stated that the government’s priority is to improve the ease of doing business, lower the cost of doing business, and lessen the regulatory burden on businesses, with the second phase of changes scheduled to be in place by April-May.
The government had previously implemented key changes in September to offer liquidity to the sector and relieve the burden on debt-ridden companies such as Vodafone Idea and BSNL.
“Telecommunications infrastructure is the bedrock of any digital economy, and the government is committed to digital inclusion as a means of financial inclusion and growth. Equal access to telecommunications across the country is critical for this. That is why we are concentrating our efforts on developing new technologies that will increase affordability, accessibility, and other factors ” Rajaraman remarked.
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