Govt expects Rs 45,471cr revenue from communication services

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The government expects a revenue of Rs 45,471 crore from communication services, including proceeds from three sets of spectrum frequencies and related charges in this financial year.

The estimated receipts from communication services in the Budget for 2014-15 presented by Finance Minister Arun Jaitley today are higher than Rs 38,954 crore revenue projected in the interim budget earlier.

The receipts under the same head were Rs 40,847.06 crore in 2013-14, according to revised estimates for FY14.

"Receipts under other communications services mainly related to one-time spectrum charges levied as per recommendations of TRAI, auction of 1,800 Mhz (megahertz) and 900 Mhz spectrum and receipts from 800 Mhz spectrum," the Budget document said.

GSM players use spectrum in 1800 Mhz and 900 Mhz band for providing wireless telecom services, while 800 Mhz band is used by CDMA service providers.

In coming days, 1800 Mhz and 900 Mhz band can be used for high-end mobile services like 3G and 4G.

In FY 2013-14, the government had set a target of raising Rs 40,847.05 crore, which was later revised to Rs 40,847.06 crore, from communication sector. Of this, about Rs 11,333 crore were expected from spectrum auction.

The spectrum auction held in February fetched government Rs 18,267 crore, about 60 per cent more than it estimated.

The government had put on the block about 385 MHz of radiowaves in the 1800 MHz band, and 46 MHz in the 900 MHz band.

At the base price, that cumulatively amounted to about Rs 47,933 crore but auction attracted total bids of Rs 62,162 crore approximately.

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