Telecom Sector is expected to provide revenue of nearly Rs 13,000 Crore to the Indian government in the fiscal year 2008-09, highest than all the other sectors.
The Indian government is likely to earn whopping revenue of around Rs 13,000 Crore (approx. US$ 2.6 Billion) in the fiscal year 2008-09 from the telecom sector in the form of spectrum charges and license fees, as reported by TopNews.in.
The revenue of telecom operators in India is expected to be around Rs. 1.25 Lakh Crore (approx. US$ 25.1 Billion) in the fiscal year 2008-09, while the adjusted gross revenue is likely to stay at Rs 95,000 Crore (approx. US$ 19.1 Billion). The share of the Department of Telecom (DoT) in the adjusted revenue will be 12%, equivalent to around Rs 13,000 Crore.
After tax, the revenue from the telecom sector will be the second leading contributor to the Indian government. Hence, the government will gain a lot by auctioning of WiMAX and 3G services.
Major telecom operators from around the world are constantly working to enhance their presence in India by coordinating and building partnerships with local players. According to an estimation from DoT, foreign direct investment in India soared 2.5 times from US$ 478 Million in 2006-07 to US$ 1,261 Million in 2007-08.
Moreover, a total of 15.64 Million new wireless subscribers added to the base in March 2009 and the number of wire line subscribers increased marginally for the first time in the last two years. Rise in the number of both wireless and wire line subscribers depict the growth of the telecom sector as a whole.
However, DoT has criticized the Ministry of Defense for its reluctance to sign the Memorandum of Understanding (MoU) that would specify the roadmap of the spectrum’s vacation for the commercial telephony. Spectrum through which communication signals propagate is very crucial for telecommunication companies as they serve as lifeline for their service offerings.
A Senior Research Analyst at RNCOS said, “DoT is anticipating to receive a huge amount of money from service providers in the form of spectrum charges and license fee. Currently, the private service providers in India can provide their services through 2G spectrum and defense forces are occupying the bulk of the space in this spectrum. Therefore, the government should firstly settle all disputes relating to the allocation of spectrum to improve the telecom services in the country.”
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