The Hindu Business Line : DoT's move for utilising USO fund finds few takers

Home Page - Rural Development
Info-Tech - Telecommunications
Industry & Economy - Regulatory Bodies & Rulings
DoT's move for utilising USO fund finds few takers

Thomas K. Thomas

Only Reliance Communications has submitted a proposal

New Delhi June 20 The Department of Telecom's initiative to get private operators involved in developing schemes to utilise over Rs 10,000 crore lying unused in the Universal Services Obligation (USO) fund has fallen flat with only one operator showing interest till now.

DoT had earlier asked operators to come up with projects for rural areas that can be funded through the USO fund. However, only Reliance Communications has submitted a proposal, according to senior DoT officials.

"We have got no response from the operators till now except for one company, which has given some interesting ideas. We had told the operators to give suggestions on how we could use technology in reaching the unconnected. We are ready to fund their projects as long as they were connecting the rural areas," said a senior DoT source.

Slow utilisation

While operators have been contributing 5 per cent of their annual revenues to the USO fund the utilisation has been slow until now. "Till last year our hands were tied as the mandate given to the USO fund was to the extend of offering fixed line telephones and village public phones. It is only now that the scope of the fund has been expanded to allow for new services and technologies. Therefore, we are undertaking new project for which we need the funds as well as participation from operators," said a DoT official.

With telecom industry revenues touching Rs 80,000 crore, the USO fund has a huge surplus.

Operators on the other hand said that with the ongoing cellular and broadband projects being undertaken under the USO fund, there was no need to maintain such a large kitty anymore. "The two phased cellular project will provide mobile coverage to 100 per cent of the country in terms of geographical coverage. DoT should now reduce the revenue share being taken from the operators to 2.5 per cent from 5 per cent," said an operator.

DoT officials, however, said that USO fund will be relevant as long as there was digital divide, which changes it nature as technology moves ahead. "Today, we have a digital divide between rural and urban, and tomorrow we may have a divide between those who have access to high speed data networks and those who don't. USO fund will be required to fill these gaps," said a DoT official.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Bay `low' becomes marked, prowls outer seas

Call rates touch new low of 0.2%

Allow MFs in commodity futures: NCDEX

`MF industry should look at other growth options'

Mittal-HPCL deal: Cabinet may decide today

Centre may divest 10% stake in Oil India later this year

Tata Motors raising $450 m in global markets

Centre's move to supply CFLs at lower prices

Danone sees early end to dispute with Wadias

Staff leaving talk hurts JM Fin

DoT's move for utilising USO fund finds few takers

Supply situation tight for DAP this year