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Continued decline in telcos revenue to impact govt collections: Manoj Sinha

Operators pay 8% of their telecom services revenue as licence fee to the government

Press Trust of India  |  New Delhi 

Telecos, Manoj Sinha, Communications Minister
Founder & Chairman of Bharti Enterprises Sunil Bharti Mittal with Gopal Vittal CEO of Bharti Airtel and Himanshu Kapania MD of Idea Cellular Limited at meeting with Telecom Minister Manoj Sinha in New Delhi. Photo: Dalip Kumar

Revenue collection from in form of and usage charges may be adversely impacted in the current financial year if sales revenue of operators continues to decline, Union minister said on Wednesday.

The telecom industry, including state-owned firms, and major have apprised the about the financial stress, the telecom minister informed the today.

The witnessed a sharp decline in revenue in the second half of 2016-17, he said.

"The revenue decline in the second half of financial year 2016-17 was mainly concentrated in the last quarter of the year. The declining 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 collected 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.

"If this trend continues, the License Fee and the Usage Charges are likely to be impacted adversely during the current financial year," Sinha said.

Operators pay 8 per cent of their revenue as to the

The minister said that an inter-ministerial group (IMG) has been set up by the with representatives from Department of Telecommunications, Department of Financial Services, Department of Economic Affairs and Department of Revenue.

The role of the IMG is to examine systemic issues affecting viability and capacity in and furnish recommendations for resolution of stressed assets. The panel has to suggest policy and strategic interventions for the telecom sector, he said.

First Published: Wed, July 26 2017. 17:15 IST