Fueled by ease of doing business measures introduced by the government in the last 2-3 years, the revenue of the telecom sector may cross Rs 5 trillion in the next two years. The DoT's apex decision-making body Digital Communication Commission proposed the idea of relooking at current practices of spectrum allocation and working on new methodologies like dynamic spectrum allocation, while also enhancing spectrum usage efficiency and deriving its economic value and for shorter duration.
"I can see that in the last 2 to 3 years, there has been much ease of business, and that reflects in the kind of revenues that the telecom sector is generating now. I hope it continues to grow like that in the next two years, it won't be surprising if we break the barrier of Rs 5 trillion in terms of gross revenue from this sector," said Digital Communication Commission Member Manish Sinha.
According to a report by sector regulator Trai, telecom service providers posted a gross revenue of Rs 3.36 trillion in the financial year 2024. Sinha also said he has been informed that the telecom sector will touch Rs 4 trillion in gross revenue this year.
He further said that if there is a burst in revenue through any big innovation then probably it will put to rest the demand of fair share from the over-the-top applications.
"We need to evolve models to measure spectrum utilisation efficiency and spectrum economic value. In 2010, when the first auction was held, all the spectrum that was allocated then has probably become valueless today," Sinha said.
The auctions for 3G and wireless broadband access spectrum in 2010 had fetched the government around Rs 1 trillion.
