Home Business Telecom Sector AGR Grows 1.75 Per Cent To Over Rs 65,000 Crore In Q1 | Arabian Weekly

Telecom Sector AGR Grows 1.75 Per Cent To Over Rs 65,000 Crore In Q1 | Arabian Weekly

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Telecom Sector AGR Grows 1.75 Per Cent To Over Rs 65,000 Crore In Q1 | Arabian Weekly

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KOLKATA: The telecom secor recorded 1.75% sequential growth in adjusted gross revenue (AGR) in the April-June quarter, during which Bharti Airtel and Reliance Jio saw a rapid uptake of 5G services, further accelerated by sporting events like the Indian Premier League (IPL).

The latest data released by the Telecom Regulatory Authority of India (Trai) on Tuesday showed Bharti Airtel notched up the highest sequential AGR gain in the first quarter of 2023-24, with Jio and Vodafone Idea (Vi) also reporting quarter-on-quarter increase in AGR.

Bharti Airtel’s quarterly AGR, or revenue from licensed services, increased 4.08% sequentially to `19,256 crore in the April-June period, while Jio and Vi’s increased 2.05% and 0.8% to `23,457.11 crore and `7,267.76 crore, respectively, Trai data showed.

The overall telecom sector’s AGR increased 1.75% sequentially to `65,624 crore in the June quarter.

Higher quarterly AGR translated into higher licence fee and spectrum usage charge (SUC) collections for the Department of Telecommunications (DoT). The licence fee mop-up climbed 1.69% sequentially to `5,246 crore while SUC collections increased 8.32% quarter-on-quarter to `818 crore, data collated by the regulator showed. Analysts said the sequential growth in SUC collections was sharper – on a low base – as Vi is believed to have cleared some past dues.

ET had reported on September 9 that Vi had told DoT it would clear 90% of its licence fees and SUC dues, with fee payments, for the June quarter.

Telcos annually pay 8% of AGR as licence fees while the overall SUC payout is well below 1% of AGR after the government had said airwaves acquired from the last 5G auction onwards won’t attract any SUC.

Overall sectoral minutes of consumption increased during the quarter, with the all-India average minutes of usage per subscriber per month from wireless services went up 1.45% sequentially to 960.

Access services contributed 80.52% of total telecom services AGR in the first quarter of the fiscal. The Trai report also indicated that the telecom industry’s monthly average revenue per user from wireless services increased 2.33% quarter-on-quarter to `145.64.

Data collated by the regulator showed the country’s internet user base expanded 1.65% sequentially to 895.83 million in the April-June quarter. Of this, the broadband internet base comprised 861.47 million users while the balance 34.36 million made up the narrowband internet user base.

Source: The Economic Times

The post Telecom Sector AGR Grows 1.75 Per Cent To Over Rs 65,000 Crore In Q1 first appeared on Latest India news, analysis and reports on IPA Newspack.

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