Telecom dept's budget allocation reduced as sector faces financial crunch

The telecommunications department's allocation in financial year 2019-20 has been revised downward to Rs 8740.11 crore, as mobile service providers are expected to contribute less in the form of spectrum usage charges and other levies that are calculated on the adjusted gross revenue of telecom firms.

The charges also include funds raised via spectrum auction and in the form of license fees.

Telecom or communication services contribute revenue to the government in the form of license fees and spectrum charges. Revenue earned from spectrum auction is also included.

According to an industry expert, who declined to be named, financial stress will lead to