Telecom Industry AGR Rises 1.75% To Over 65k Crore in Q1 By CIOTechOutlook Team

Telecom Industry AGR Rises 1.75% To Over 65k Crore in Q1

CIOTechOutlook Team | Wednesday, 06 December 2023, 11:26 IST

The telecom sector grew by 1.75% sequentially in adjusted gross revenue (AGR) in the April-June quarter, with Bharti Airtel and Reliance Jio seeing quick adoption of 5G services, aided by sporting events such as the Indian Premier League (IPL).

The latest data released by the Telecom Regulatory Authority of India (Trai) 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, as per economic times.

According to Trai data, Bharti Airtel's quarterly AGR, or revenue from licensed services, climbed 4.08% sequentially to '19,256 crore in the April-June period, while Jio and Vi's increased 2.05% and 0.8%, respectively, to '23,457.11 crore and '7,267.76 crore. In the June quarter, the overall telecom sector's AGR climbed 1.75% sequentially to '65,624 crore.

Higher quarterly AGR meant that the Department of Telecommunications (DoT) collected more license fees and spectrum usage charges (SUC). 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 believe Vi has cleared some previous dues, resulting in a higher sequential increase in SUC collections.

Telcos pay 8% of AGR in licence fees each year, whereas the overall SUC payout is much below 1% of AGR after the government stated that airwaves acquired after the latest 5G auction will not attract any SUC.

During the quarter, overall sectoral minutes of consumption grew, with the all-India average minutes of usage per subscriber per month from cellular services increasing 1.45% sequentially to 960.