Telecom Revenue Projections Slide Amid 5G Transition

The upcoming fiscal's non-tax revenue from the telecom sector is projected to be 33% lower. Telecom Minister Scindia attributes this to previous extensive spectrum auctions and AGR dues, indicating future spectrum demand may rise. Reduced allocations for BSNL also reflect decreased need post-spectrum distribution.

The non-tax revenue from the telecom sector for the upcoming fiscal year is projected to drop by 33 percent to Rs 82,443 crore, as per the latest Budget documents. Revised estimates for FY25 slightly elevate revenue projections to Rs 1.23 lakh crore, against previous expectations of Rs 1.20 lakh crore.

In response to queries on the lowered estimates for FY26, Telecom Minister Jyotiraditya Scindia highlighted that telecom revenue inflows to the consolidated fund mostly stem from AGR dues and spectrum auctions. He noted the significant spectrum auctioned recently, particularly with 5G developments, impacting the lower revenue expectations.

The minister added that spectrum auctions would align with industry demand, while allocation to Bharat Sanchar Nigam Ltd is notably reduced to Rs 34,257 crore for FY26. He emphasized that previous spectrum allocations reduced BSNL's further needs, aligning with the lower subsidy requirements.

(With inputs from agencies.)