Telecom Sector Contributed Rs. 139 Billion in Taxes in July-December FY23: Economic Survey

The telecom sector contributed Rs. 139 billion to the national exchequer in terms of taxes, regulatory fees, initial and annual license fees, activation tax, and other taxes during July-December, fiscal year 2022-23.

Telecom investments reported by telecom operators during FY2022 reached a significant amount of US$ 2,073 million due to spectrum acquisition and network expansion, however, it remained low at US$ 422.0 million during the first two-quarters of FY2023, according to the Economic Survey 2022-23 released on Thursday.


Increased activity in the telecom sector enabled telecom operators to generate revenues of Rs. 694 billion in FY2022, registering a healthy growth of 6.6 percent. The economic slowdown and increased operational costs have resulted in slower growth of the cellular mobile sector. As per provisional data, revenues from the telecom sector in the first two quarters of FY2023 stood at Rs. 378 billion.

Telecom Subscribers and Tele-Density

During FY2022, mobile subscriptions registered a healthy annual growth of 6 percent. The cellular mobile segment was the main contributor toward overall growth in subscribers and teledensity. At the end of March 2023, the total telecom subscriptions (mobile and fixed) were 197 million and total teledensity in the country reached 83.2 percent.

Due to the economic slowdown a slight decline in cellular mobile subscribers and teledensity has been witnessed during July-March FY2023.

Broadband and Cellular Growth

Increased penetration of broadband services has propelled the active use of data services. In FY2022 mobile data usage of 8,970 petabytes was reported, indicating a 31 percent increase from the previous year.

Based on the figures from July-December 2022, it is projected that mobile data usage will reach 10,633 petabytes during FY2023.

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