USO Fund Archives


DoT, BSNL in MoU for rural reach

Posted on January 27, 2009  /  0 Comments

The Business Standard, 27 January 2009 The Department of Telecommunications (DoT) has signed a memorandum of understanding (MoU) with state-owned telecom operator Bharat Sanchar Nigam Ltd (BSNL) to provide wireless broadband in rural areas. Under the MoU, BSNL will provide wireless broadband at 29,000 rural exchanges throughout the country. Each exchange will have 31 connections along with one kiosk for public use. A DoT official said, “Out of these 31 connections, 6 will be used by institutions like schools, while the rest will be for individual users.” The implementation of the entire project is expected to be completed by 2011.
Harsha de Silva & Payal Malik 20 May 6pm PM: specifically looking at subsidy mechanisms for diversification, hence ‘moving beyond the market . Instruments looking at are hte universal service obligation fund (USF) and hte access deficit charge (ADC). There has been a diminishing of market efficiency gap (i.e, efficiency is improving). Slide # 3 shows the major improvements in efficiency in the market.
By Payal Malik In his budget speech the Finance Minister of India promised a release of Rs. 1,200 crores (USD 275 million) for the Universal Service Fund. While it is heartening that the funds are being released and are not being gobbled by the Contingency Fund of India, what is however disheartening is that competition and liberalisation has not achieved its full potential in bridging the rural urban divde and like in the monopoly era one has to wait for budgetary pronouncements for rural telephony to jumpstart. An extract from his speech: Telecommunication is the best way to provide connectivity in urban and rural India. By the end of January 2005, we had achieved a tele-density of 8.