According to industry sources, the government expects to collect around Rs 400 billion from telecommunications sector this fiscal, less than a third of the budget estimate of Rs 1.33 trillion. This low amount yield has been attributed to the absence of 5G airwaves in the upcoming auctions and limited payments towards past adjusted gross revenue (AGR) dues.
In the absence of premium 5G airwaves from the upcoming auction to be held in March 2021 and likely limited appetite, the Department of Telecommunications (DoT) expects a maximum of around Rs 100 billion as upfront payments this fiscal, which signals overall proceeds of around Rs 400 billion under the communications head.
As per government estimates, it will be able to collect Rs 200 billion-Rs 220 billion at best by way of licence fees and spectrum usage charges (SUC) this fiscal. In addition to this, it expects to earn around Rs 50 billion as miscellaneous charges, making up an estimated Rs 380 billion- Rs 400 billion revenue receipts from communication services this fiscal.
In addition, payments towards the past AGR dues are likely to be around Rs 10 billion only.
