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The telecommunications (telecom) sector witnessed a 2.53 per cent sequential growth in adjusted gross revenue (AGR), reaching Rs 64,494 crore in the January-March quarter (fourth quarter, or Q4) of 2022-23 (FY23), reveals government data released on Monday.
AGR serves as the bedrock for the Department of Telecommunications in calculating levies payable by operators and had risen by 1.5 per cent in the preceding quarter.
According to data from the latest Telecom Services Performance Indicator Report, AGR saw a 9.5 per cent increase on an annual basis, attributed to tariff hikes initiated by Bharti Airtel and Vodafone Idea (Vi), as well as higher average revenue per user (ARPU).
However, the gross revenue of telecom service providers fell by 3.19 per cent sequentially to Rs 85,356 crore in Q4FY23.
The licence fee collected in Q4FY23 rose by 2.53 per cent quarterly to Rs 5,159 crore, according to the latest data released by the Telecom Regulatory Authority of India. On an annual basis, it increased by 9.4 per cent, up from Rs 4,712 crore in the same quarter of the previous year.
Collections from the spectrum usage charge (SUC) declined once again due to the government’s decision to cease charging the statutory fee on airwaves acquired from the 5G auction held in July 2023.
SUC collections experienced a 6.94 per cent quarterly decline, amounting to Rs 755 crore during the latest reported quarter, down from Rs 811 crore. This represented a substantial 61 per cent drop from the Rs 1,926 crore registered in the same quarter of the previous financial year.
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Market leader Reliance Jio had the highest AGR of Rs 22,985 crore in Q4FY23, marking a 1.7 per cent increase from the preceding quarter and an 11.25 per cent increase from the Rs 20,659 crore registered in Q4 of 2021-22 (FY22).
In second place, Airtel witnessed a 1.15 per cent sequential rise in AGR, reaching Rs 18,500 crore in Q4FY23. This marked a 15.3 per cent increase on an annual basis, up from Rs 18,290 crore in Q4FY22.
Vi saw a 1.61 per cent sequential decline in AGR during the March quarter of FY23, reaching Rs 7,210 crore. On an annual basis, the cash-strapped telecom company (telco) saw no movement in its AGR.
State-owned Bharat Sanchar Nigam (BSNL) witnessed a 4.9 per cent sequential increase in AGR, reaching Rs 2,083 crore. AGR marked a 19.02 per cent annual increase.
Access service providers, including Jio, Airtel, Vi, and BSNL, contributed 80.06 per cent to the total AGR of telecom services.
Overall ARPU on the rise
The sector’s monthly overall ARPU increased to Rs 142.3, up from Rs 141.4 in the preceding quarter. Prepaid ARPU rose to Rs 139.6 in Q4FY23, up from Rs 137.7 in the previous quarter.
Meanwhile, ARPU for postpaid services continued to decline in the latest reported quarter, shrinking to Rs 173.5 compared with Rs 182.3 in the third quarter of FY23.
Telcos consider the postpaid segment premium and are increasingly focused on converting subscribers into postpaid users.
