Introduction:
The Department of Telecommunications (DoT) has introduced draft rules to implement the Digital Bharat Nidhi (DBN), marking a significant initiative by the central government to enhance telecom connectivity in rural areas.
Digital Bharat Nidhi (DBN) is set to replace the Universal Service Obligation Fund (USOF), which was previously funded by a 5% Universal Service Levy on the Adjusted Gross Revenue (AGR) of all telecom operators.
The primary objective of DBN is to subsidize the development of telecom infrastructure in remote and rural regions, where private companies may be reluctant to invest due to limited profitability.
Body:
Mechanism of Digital Bharat Nidhi (DBN):
- Contributions made by telecom companies to the DBN will initially be deposited into the Consolidated Fund of India (CFI), which includes all government revenues, loans, and repayments. The government utilizes this fund to finance various expenses.
- Periodically, the funds collected in the CFI will be transferred to the DBN.
- The funds in the DBN will be allocated to promote universal telecommunication services in underserved areas—rural, remote, and urban—along with funding research and development, pilot projects, and new technologies in the telecom sector.
- The draft guidelines propose the appointment of an “administrator” by the Centre, who will select “DBN implementers” through competitive bidding or application processes.
- The administrator will determine the funding strategies for DBN implementers, which may include full funding, partial funding, co-funding, risk mitigation, or risk capital.
- Specific focus will be given to projects aimed at improving access to telecommunications for underserved groups such as women, persons with disabilities, and economically disadvantaged communities.
Conclusion:
The DBN’s initiatives and projects are designed to meet key objectives such as introducing next-generation telecom technologies in underserved areas, making services more affordable, fostering innovation and R&D, and promoting indigenous technology. Additionally, DBN will support the creation of regulatory frameworks, establish national standards, and encourage start-ups in the telecommunications and telecom equipment manufacturing sectors, thereby contributing to a more connected and inclusive Digital India.