Centre likely to achieve Rs 1.2 lakh crore revenue target from telecom sector

The government is likely to achieve its target of garnering Rs 1.2 lakh crore as revenue receipts from the telecom sector, even if there is no big-bang spectrum auction in the next financial year, experts and officials said.

The mop-up is likely to be made possible due to improving financial health of the telecom sector, leading to rise in licence fee and spectrum charges, while a good quantum of money will come from state-run Bharat Sanchar Nigam (BSNL) for its 5G spectrum payment. The company never participates in auctions but always pays a market-determined price for its spectrum needs.

“Usually, there is around a 10% increase in licence fee and spectrum charges annually as the revenue of the sector is increasing. Apart from that, a good part will come from BSNL 5G spectrum payments,” a person aware of the details told ET.