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kesav

Universal Service Obligation Fund of India -- A Renewed Focus

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The brand new website of USOF

http://usof.gov.in/usof-cms/home.jsp

Current Fund Status

http://usof.gov.in/usof-cms/usof_fundstatus.htm

Finance Ministry proposes soft loans for telcos from USO Fund

NEW DELHI: India’s mobile operators may soon have access to soft loans for their rural forays, a move that will improve the country’s poor record of

telecoms penetration outside the metros, towns and cities.

The finance ministry has asked the telecoms department to explore feasibility of giving telcos low cost loans from the Universal Service Obligation Fund (USOF) for their rural communication projects. All telecom operators have been paying 5% of their annual revenues towards this fund, which was established in 2002 to support rural telephony. It is estimated that the unutilized amount in this USOF kitty is over Rs 25,000 crore as of March-end 2010.

The fin min has proposed that Department of Telecom (DoT) examine two options – the Telecommunication Loan and Guarantee of Rural Utility Services of USA or the US Department of Agriculture’s Rural Broadband Programme. It has also added that the DoT can work with IIM (A) to develop a similar model that can be implemented for Indian operators.

The Telecommunication Loan and Guarantee of Rural Utility Services runs a $2.5 billion Broadband Initiatives Program (BIP) and is designed to encourage the availability of telecommunication services in rural or under-served areas. The loans cover the costs of constructing, improving and acquiring facilities to provide broadband service to rural communities.

The American government carries out a rigorous technical acceptance process to ensure that all products and technologies are qualified to receive the funding. Similarly, the US Agriculture Department’s rural broadband programme provides loans to fund projects such as distance learning to bring electronic educational resources to rural schools, and telemedicine, to improve health care delivery in rural America.

The finance ministry too has pointed out that these soft loans can be disbursed for rural connectivity projects, especially those related to wiring up schools, colleges, health centres and hospitals. It is also of the view that this could lead to a slew of public private partnerships in rural India to provide services such as tele-medicine, e-learning, SME training amongst others.

Additionally, the fin min has also told DoT that a structure as that of the US can encourage telecom operators to provide innovative wired broadband services in rural India. For instance, it has pointed out that subsidies may get telcos to work with cable operators and use the latter’s infrastructure for providing broadband services. "Encouraging a multiplicity of players and alternative wireline technologies in every service area would generate the competitive pressures needed to ensure service quality, customer orientation, innovative marketing and pricing, which are essential to precipitate development of the rural broadband market..." the fin min’s communication added.

source :: http://economictimes.indiatimes.com/news/news-by-industry/telecom/Finance-Ministry-proposes-soft-loans-for-telcos-from-USO-Fund/articleshow/5996898.cms

Broadband is no more a luxury, it's a necessity.

It's like oxygen for surviving in future electronified world.

UPA govt. should and must enact law for 'Right to Broadband' which will make broadband provision to citizen as a state's obligation.

The main hindrance currently is cyber knowledge which should be treated at the same vigour as we did with our literarcy.

USOF should be used to make rural people computer literate by conducting part time evening classes.

USOF should be used to help broadband access device manufacturers to produce cheaper affordable devices for rural masses.

The second most and very critical is availablity of content in local language.

As the saying goes "Anything presented in other languages are theoretical and things presented in mother tongue is practical". To make the things in cyber world a practical one, it's necessary to spread the content in all Indian languages so that the fruits of technology can be tasted in nook and corner of India.

Major portion of USOF should be dedicated for developing content in all Indian languages.

The third critical point is telecom infrastructure.

The fibre has to be laid, towers has to built in most hostile enivronments (like Himalayas, Thar Desert, Isles of Andaman&Nicobar Lakshadweep, Forests of North East) to reach the massses.

USOF can be used to do the job.

Finance ministry should be generous enough to give 20% of earnings from 3G&BWA auctions to USOF to make broadband a nationalband.

Edited by kesav

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Draft Tender Document for Rural Wireless Broadband Scheme for Setting up & Management of Wireless Broadband Network and Provision of Wireless Broadband Services in Specified Rural and Remote areas.

http://usof.gov.in/usof-cms/tender/Draft_Tender_Document_Rural_Wireless_BB_Website_21[1].4.2011.pdf

http://usof.gov.in/usof-cms/usof_tencurrent.htm

Edited by kesav

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