Telecom profits increase by 2% to Rs. 452.8 billion during 2015-16

In the financial year of 2015-16, the telecom branch’s total income reached to Rs. 452.8 billion. The income augmented slightly higher than 446.2 billion which was recorded during 2014-15.

Income of telecom sector was disclosed by Pakistan Telecommunication Authority (PTA) today. It was said that the telecom sector developed by a mere amount of 2% during the year, mostly due to the drop in LDI earnings after discharge of ICH, a big increase in competition and stunt growth in voice revenues.

Cell phone operators produced a total of Rs. 343.83 billion during the period 2015-16, which is more than they earned during the last year which is Rs. 317.02 billion.

LDI operators generated revenue of Rs. 23 million during 2015-16, less than they had earned in the previous year. During 2014-15, they earned Rs. 80.81 million. The drastic decrease in LDI revenues is primarily due to the discharge of ICH, a drive that permitted international operators to arrange international incoming call bills at higher rates.

On the other hand, local loop operators displayed earnings up to Rs. 76.415 million during the same period, nearly the double of Rs. 40.765 million that they earned a year ago.

Class value added services exhibited an astonishing growth and earned Rs. 43 million in revenues, more than Rs. 3.78 million which they generated in the previous year.


Telecom department funding to National Exchequer

Besides all the big claims and a remarkable increase in the usage of 3G and 4G, tax collection has still managed to decrease to almost 10%.

GST collection stood at Rs. 41.65 billion, less than 45.8 billion; collected by the telecom operators. In 2013-14 the GST collection by telecom operators reached Rs. 60.1 billion, but it has been decreasing since then.

In the previous year, total funds collected from telecom operators stood at Rs. 126.3 billion. During 2015-16, it increased up to 157.85 billion. The major contributor to this increase in telecom’s revenue towards national exchequer incorporates the returns from spectrum fee that PTA received from telecom operators.


Source: ProPakistani 

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