Telecom Service Sector's AGR Climbs 1.8% to Rs 67,835 Cr in December 2023: TRAI Data

The telecom sector in India has witnessed a modest increase in its financial performance during the December 2023 quarter, as revealed by the latest data from the Telecom Regulatory Authority of India (Trai). The Adjusted Gross Revenue (AGR) of the telecom service sector saw a sequential rise of 1.88 per cent, reaching Rs 67,835 crore. This growth is part of a broader trend, with the AGR marking a 7.84 per cent increase year-on-year.

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Further dissecting the financial health of the sector, Gross Revenue (GR), Applicable Gross Revenue (ApGR), and AGR stood at Rs 84,500 crore, Rs 81,101 crore, and Rs 67,835 crore, respectively. These figures represent increases across the board: GR by 2.13 per cent, ApGR by 1.70 per cent, and AGR by 1.88 per cent compared to the previous quarter.

Access services emerged as a significant contributor, accounting for 82 per cent of the total AGR from telecom services. Within this category, various financial metrics such as GR, ApGR, AGR, License Fee, Spectrum Usage Charges (SUC), and Pass Through Charges witnessed growth ranging from 1.11 per cent to 2.53 per cent in the quarter ended December 2023.

Bharti Airtel and Reliance Jio continued to lead the pack in terms of AGR performance within the access services segment. Bharti Airtel's AGR saw a quarter-on-quarter increase of 3.2 per cent to approximately Rs 20,480.6 crore. This growth translates into an impressive year-on-year rise of nearly 12 per cent. Reliance Jio's AGR also experienced positive momentum, climbing by 2.7 per cent sequentially to Rs 24,862.85 crore, with a year-on-year growth rate of 10 per cent.

On the other hand, Vodafone Idea faced a slight setback with its AGR dipping by 0.65 per cent sequentially to about Rs 7,459 crore in the December quarter. This comes after the company completed its Rs 18,000-crore follow-on public offer, aiming to strengthen its financial position.

The report also highlighted that Public Sector Undertakings (PSUs) accounted for a modest share of 3.87 per cent in the Access AGR of telecom services for the quarter ended December 2023.

The telecom sector's performance indicators for the December quarter underscore a steady growth trajectory amidst competitive dynamics and regulatory environments. As companies navigate through operational challenges and capitalise on emerging opportunities, the sector continues to play a pivotal role in India's digital transformation journey.