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MANAGEMENT OF USO FUND  

NTP – 99 ushered in a new era of telecom development in India by creating a multi operator telecom regime.  The prime concern of Govt. of India to ensure accessibility and availability of telecom services in the remotest corners of the country at an affordable price which hitherto was implemented by DOT i.e. the monopoly telecommunication provider through the existing schemes of providing public access experienced multi-dimensional changes.   The universal monofunctional service support policy which was primarily an unidirectional policy for provision of PTs (Public Telephones) either as LDPTs (Long distance public telephone) on the basis of population of a village in the 70s or GPTs (Gram Panchayat Telephones) during 80s or as VPTs (Village Public telephones) in every village during 90s was replaced by a multi-dimensional universal service support policy for provision of telecom facilities for both public access and individual access by multiple telecom service providers  who had joined the main stream of telecom development in the country. The new universal service support policy in telecom sector with appropriate structural modifications thus came into existence in 2002-03 which not only envisaged modification of the existing policies of providing PTs but also participation of multiple operators in development of telecom services in the rural, remote and un- remunerative areas of the country.  The resources for implementation of the new policy are being raised through an UNIVERSAL SERVICE LEVY which is being collected from all the telecom service providers. An organization called Universal Service Obligation Fund Administration (USOFA) was created as the structural manifestation of the policy and the newly created CCA (Controller of Communication Accounts) setups in each Telecom Service area were identified as the field manifestations of USOFA.   

Since the inception of the new setup in consequence to the amendment to Indian Telegraph Act in 2003 and modification of Indian Telecom Rules in 2004 the following schemes had been identified for implementation of the universal service support policy of Govt. of India for development of telecom services in rural & remote areas.    

A       PUBLIC ACCESS 

A.1    Village Public Telephones  

         Agreements were signed with several Telecom Service providers in March 2003 for operation and maintenance of existing Village Public Telephones (VPTs) in the country in the identified revenue villages as per Census 1991. In addition, subsidy support is also admissible for the VPTs installed in additional revenue villages as per census 2001.

A.2     New VPTs in the Uncovered villages 

         Agreements were signed with M/s BSNL in November 2004 to provide subsidy support for provision of VPTs in 66822 no. of uncovered villages as per Census 1991 in the country excluding those villages having population less than 100, those lying in deep forests and those affected with insurgency.             

          A.3       New VPTs to be provided in the villages as per Census 2001 

         As per Census 2001, there are about another 62,443 uncovered villages, which are yet to be provided with VPT facility. Such uncovered villages shall also be provided with VPT facility with subsidy support from USOF. Agreements in this regard have been signed with BSNL on 27.02.2009. 

A.4  Replacement of MARR VPTs  

1,86,872 no. of VPTs which were earlier working on Multi Access Radio Relay (MARR) technology and installed before 01.04.2002 are to be replaced by reliable technology equipment as most of these were non functional. Both capital and operational expenses are to be supported for this activity. The number of MARR VPTs to be replaced has subsequently been revised as 185121.   

a.5   Provision of Rural Community Phones

46,253 villages with population exceeding 2,000 and with only one Public phone facility are being provided with a Rural Community Phone (RCP). Agreements were signed with M/s BSNL and M/s RIL in September 2004 to provide 24,822 and 21,431 RCPs respectively in these villages over a period of three years i.e. by 30.09.2007. These installations are eligible for both Capital and Operational subsidy. The number of RCPs to be provided has subsequently been revised as 40705 [BSNL: 21958, RIL: 18747]. 

B        INDIVIDUAL ACCESS

B.1     RDELS (01.04.05 to 31.03.07)

Agreements were signed with M/s BSNL, M/s RIL, M/s TTL and M/s TTL (MH) in March 2005 for installation of Rural Household Direct Exchange Lines (RDELs) to be installed during the period 01.04.2005 to 31.03.2007. These RDELs were to be installed in 1685 Short Distance Charging Areas (SDCAs) [BSNL: 1267, RIL: 203, TTSL: 172, TTML: 43] where cost of providing telephone connections is more than the revenue earned. Support in the form of front loaded subsidy is being given for all the lines (RDELs) installed from 01.04.2005 to 31.03.2007. The equated annual subsidy where payable, shall be given up to a maximum period of validity of the Agreement (Five years) and validity period ends in March 2010. Subsequently the cutoff date for installation of the RDELs was extended to 31.3.2010.

B.2   RDELs (01.04.02 to 31.03.05) 

Support is also being extended for 18.65 lakhs rural lines installed between 01.04.2002 and 31.03.2005 at the same rates as applicable for the RDELs at (i) above. Agreements to this effect were signed with M/s BSNL and M/s RIL in May 2005 & August 2005. The equated annual subsidy is to be given for a maximum period of five years from the date of installation of these RDELs. One time front loaded subsidy is payable only for net addition of rural household DELs. 

B.3     RDELs (Prior to 01.04.02) 

Support has been extended to nearly 90.5 lakh rural household Direct Exchange Lines (RDELs) installed prior to 01.04.2002 towards the rental differential between the TRAI prescribed rental and the rental charged by the Service Provider. The support was for the limited period of 01.04.2002 to 31.01.2004. The Access Deficit Regime has come into operation from 01.02.2004.  

B.4     Rural Wireline Household DELs installed prior to 01.04.2002  

Based on the recommendations of TRAI, Indian Telegraph Rules (ITR) have been amended to provide subsidy support to the eligible operators for operational sustainability of Rural Wireline Household DELs installed prior to 01.04.2002 in lieu of ADC being phased out, This support shall be provided for a period 3 years subject to a ceiling of Rs. 2000 Crore per annum.  

C         INFRASTRUCTURE SUPPORT FOR MOBILE   SERVICES 

A scheme has recently been launched by USO Fund to provide subsidy support for setting up and managing 7871 (revised to 7440) number of infrastructure sites (towers) in 500 districts spread over 27 states for provision of mobile services in the specified rural and remote areas, where there is no existing fixed wireless or mobile coverage. The infrastructure so created shall be shared by three service providers for provision of mobile services. The agreements effective from 01.06.2007 have been signed with the successful bidders in May 2007. Mobile services from these towers are likely to be launched in a phased manner.

D        RURAL BROADBAND SCHEMES

         Agreement has been signed with BSNL on 20.01.09 to provide 8,61,459     wire-line Broadband connections to individual users and Government Institutions from 27,789 DSLAMs, installed at existing rural and remote exchanges over a period of 5-years, i.e., by 2014. 

USO SCHEMES IN CHHATTISGARH