The Parliamentary Standing Committee on Communications and Information Technology (IT) has advised the Department of Telecommunications (DoT) to diversify its income sources amid slowing sector growth. The panel recommended measures like monetising data services, expanding satellite broadband, and leveraging 5G and internet of thing (IoT) technologies to stabilise government earnings.

It also proposed phasing out moratoriums on adjusted gross revenue (AGR) and spectrum dues and setting clear payment timelines. The proposals are aimed to reduce the government’s reliance on unpredictable spectrum auctions.

Key factors for this slowdown include market saturation, regulatory changes, and financial distress among major telecom operators. Further, the committee emphasised the need for strict monitoring mechanisms and aligning auction timelines with market demand to prevent deferred payments from undermining future revenues.

Furthermore, the committee has recommended revising spectrum usage charges to make them more consistent and exploring the monetisation of infrastructure assets.