The government of India is expecting to earn revenue of Rs 454.71 billion in 2014-15 from the telecom sector, as against Rs 389.54 billion provisioned in the interim budget. The revenues would include proceeds from spectrum auction, licence fees and one-time spectrum charges.

Department of Telecommunication (DoT) collects an annual licence fees from various telecom operators, apart from one-time entry fees from new operators. Further, DoT intends to collect one-time spectrum fee from operators holding excess spectrum. The issue of one-time fee is being contested in court.

In 2013-14, the government is estimated to have earned revenues of Rs 408.47 billion from the sector. DoT concluded auction for spectrum in the 900 MHz and 1800 MHz bands in February 2014 that resulted in revenues of Rs 611.62 billion. Of this, Rs 182.96 billion is estimated to have been paid by the operators till end March 2014, as the operators had an option of deferred payments.

Meanwhile, the central government has allocated Rs 135.01 billion to the Ministry of Communications and IT under the Union Budget 2014-15. The allocation is about 45 per cent higher than the 2013-14 revised estimates.