Telecom Ministry to spend upto Rs 5000 cr from USO for subsidy

Subsidy will be given to the telecom operators for providing broadband services in rural areas of the country.

PTI | June 2, 2011



Telecom Ministry will spend upto Rs 5,000 crore from the Universal Service Obligation fund (USOF) to give subsidy to the telecom operators for providing broadband services in rural areas of the country.

The size of the tender will be between Rs 2,000 and Rs 5,000 crore, a source close to development said.

USO Funds was set-up in 2002 in order to provide mobile services and broadband connectivity in rural and remote areas of the country. At the end of FY'11, the USOF had a total of Rs 16,803.84 crore in its corpus.

The resources for USOF are raised through a Universal Service Levy (USL) which at present has been fixed at 5 per cent of the Adjusted Gross Revenue (AGR) of all Telecom Service Providers except the pure value added service providers like Internet, voice mall, e-Mail service providers etc.

The Ministry has already floated the draft tender seeking the comments from various stakeholders and body.

"Department has received comments from almost every telecom operator and the associations and Ministry will proceed to float the tender as quickly as possible," the source added.

Under the 'Rural Wireline Broadband' scheme of USOF, a total of 2,61,413 broadband connections and 2,506 kiosks have been provided till January 31, 2011, in rural and remote areas.

Last month, telecom regulator Trai had objected making state-run BSNL as execution body for the National Broadband Plan (NBP). Trai had said this in its recommendations on NBP that have been submitted to the Telecom Ministry.

When asked the reasons for Trai objecting to state-run BSNL as the execution body for this project, the sources merely said :"Actually they have made some comments so we are taking them into account".

Comments

 

Other News

How the mind can help the body heal itself

Why do some people recover from illness against all odds? Can our beliefs, emotions and consciousness influence the body’s ability to heal? Drawing on over three decades of experience in medicine, research and medical innovation, internationally trained ophthalmologist and author Dr Dinesh Verma ex

1,364 anti-cancer formulations to cost less from today

The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has capped trade margins on the Maximum Retail Price (MRP) of 137 anti-cancer drugs. This was based on the recommendations of an Expert Committee constitute

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter