The Hindu Business Line : DoT kicks off USO project for funding cell infrastructure

The Department of Telecom has initiated the process for funding cellular services through the Universal Services Obligation (USO) Fund by inviting operators to participate in setting up infrastructure in Jharkhand, one of the least uncovered areas in the country.

DoT has sent a letter to all the telecom operators and infrastructure providers seeking their inputs in finalising the draft tender to invite bids.

The model developed for Jharkhand will be replicated in other parts of the country.

Subsidy support

This is part of the Government's decision to provide subsidy support from the USO Fund for creation of infrastructure to be shared amongthree telecom service providers for provision of mobile services in rural and remote areas of the country.

Approximately 10,000 towers are proposed to be set up in rural areas, which are currently not covered by mobile signals.

"The telecom service providers and the short-listed infrastructure providers shall be eligible to create the said infrastructure while provision of mobile services would be taken up by the successful service providers only. A draft tender document for inviting comments for this project is likely to be finalised shortly. To start with, location of the towers proposed to be installed in Jharkhand have been worked out on a sample basis," said a DoT letter.

Committee nod

Meanwhile, the Parliamentary Standing Committee on IT has given its nod to the DoT's proposal to support cellular infrastructure through USO Fund.

However, the Committee has observed that there was no need to amend the Indian Telegraph Act to accommodate the plan as was being suggested by DoT.

The Committee also asked the Ministry of Finance to release necessary funds for the purpose.

It noted that while Rs 10,787 crore has been collected from the operator's licence fee, only Rs 3,581 crore has been released.

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