Tuesday, 4 September 2012

USOF- Inclusive Measure to 'Connect People'



What is it?
  • There is an ‘Universal’ associated, so obviously this must be one amongst the inclusive development strategies of the government.
  • Here the idea is to provide universal access to telecom services, i.e., focus on providing telecom services to rural and remote areas at affordable and reasonable prices.
  • A fund exclusively for meeting the above objectives has been created under department of telecommunications, Ministry of communication and information technology.
  • It is a non-lapsable fund i.e., unspent amount under target financial year does not lapse, accrues for next years’ spending.
  • All credits to the fund require parliamentary approval and it has a statutory support under Indian Telegraph (amendment) act 2003.

What are the activities undertaken?
  • Installation of village public telephones in every revenue village of 1991 census and additional  revenue village of 2001 census.
  • Provision of rural community telephones at next stage.
  • Provision of household telephones in rural areas.
  • Creation of Infrastructure for mobile services in remote, rural areas.
  • Provision of broadband in villages in a phased manner.
  • Induction of new technologies like national optic fibre network in rural areas.
-          For all the above activities a service provider gets grants from the USOF like a subsidy.
-          The service provider is usually chosen through a bidding process on least quoted subsidy support basis (minimum subsidy maximum service).
 
Resources- where from?
  • Through a Universal service levy- at 5% of adjusted gross revenue of all telecom service providers.
  • Except pure value added service providers like internet, voice mail,e-mail.
  • Also some quantum of funds is got thru central govt. grants.
  • Specialty in this scheme is that it also does some allocation under gender budgeting for providing services to women, like broadband access to women SHGs.

Timeline

1910
Theodre vail of AT&T (American multinational telecommunication corp) in a annual report makes passing reference to universal service
1999
Cabinet defines Universal service objectives in Telecom services
ITA(2003)amendment
Statutory support for USOF
ITA(2004)amendment
Rules for administration of the fund notified
ITA(2006)amendment
Mobile and broadband service providence included into its ambit


Why is it in news?
  • First BSNL was selected as service provider in many areas unilaterally for provision of services and given grants.
  • Govt. says private providers are not willing to establish infra in core affected areas so choice BSNL is inevitable, also private players will try to exploit this scheme for business ends misusing govt subsidy.
  • BSNL says it has already created infra in rural areas and now if you allow other private players it is a waste of Govt. money, so ask other players to use established facilities in rented basis.
  • Second delay in implementation and provision of services by BSNL is under critic.
  • Third now a proposal to provide services in LWE(left wing) affected areas is on the table of finance ministry, a proposal to this effect already rejected during tenure Shri Pranab Mukherjee(now Indian President) citing too much demand for funds and want of allowing private players as service providers to make it more competitive.
  • The provision of connectivity in naxal, maoist affected areas, a project designed by current FM P.Chidambaram when he was the Home minister, for improving internal security, hence it is likely to get its allocation this time.
  • Ultimately our wish let there be inclusion, improved connectivity and security.

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