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Telcos see 15% fall in first qtr earnings.

THE revenue telecom companies earned from services declined by 15 per cent to Rs 40,831 crore in the January- March quarter this year, according to a Trai report released on Wednesday.

The telecom majors had earned Rs 48,379 crore from services in the same period of last year.

The year- on- year growth in GR ( gross revenue) and AGR ( adjusted gross revenue) over the same quarter last year has been (-) 7.35 per cent and (-) 15.60 per cent respectively, Trai's performance indicator report for the quarter ended March 31, 2017 showed.

The GR includes revenues generated by the companies from all their resources while AGR comprises earnings only through telecom services.

The revenue from access services, which are part of AGR and earned by retailing to subscribers like mobile phone and landline services, declined by 20.79 per cent to Rs 31,594.91 crore during the quarter from Rs 39,885.55 crore in the same period a year ago.

Access services contributed 77.38 per cent of the total AGR of telecom services during the quarter.

The Government's revenue from the telecom sector depends on the AGR of telcos.

The licence fee and spectrum usage charges, the two main form of government earnings, therefore, also declined during the Jan- march quarter.

The license fee fell from Rs 3,698 crore for the quarter ended December 2016 to Rs 3,361 crore for the quarter ended March 2017.

The quarterly and the yearon- year growth rates of license fee are - 9.09 per cent and - 13.19 per cent respectively in this quarter, the report said.

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Publication:Mail Today (New Delhi, India)
Article Type:Financial report
Date:Jul 6, 2017
Words:286
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