Context
The Universal Service Obligation Fund (USOF), operating under the Department of Telecommunications (DoT), has entered a tripartite Memorandum of Understanding (MoU) with Prasar Bharati and Open Network for Digital Commerce (ONDC) to enhance digital services accessibility in rural India. This collaboration underscores efforts to bridge the digital divide and promote inclusivity by expanding digital infrastructure and services to remote areas.
Relevance:
GS III: Indian Economy
Dimensions of the Article:
- Key Highlights
- What is the Universal Service Obligation Fund (USOF)?
Key Highlights:
- The tripartite Memorandum of Understanding (MoU) aims to enhance the accessibility and affordability of digital services across the nation, leveraging the BharatNet infrastructure facilitated by the Universal Service Obligation Fund (USOF).
- USOF’s primary role in providing high-speed broadband connectivity in Gram Panchayats and villages will complement Prasar Bharati’s Over-The-Top (OTT) platform, which offers a range of services including linear channels, Live TV, and on-demand content.
- Prasar Bharati will leverage its extensive legacy, consumer reach, and brand recognition to curate content for its OTT platform, ensuring a diverse and engaging experience for users.
- The Open Network for Digital Commerce (ONDC) will contribute technical expertise and infrastructure to enable digital commerce across various sectors, expanding beyond traditional e-commerce to include education, health, finance, and agriculture, thereby promoting inclusive digital growth.
What is the Universal Service Obligation Fund (USOF)?
- The Universal Service Obligation Fund (USOF) was established with the primary objective of providing access to ‘Basic’ telecom services to people in the remote and rural areas at reasonable and affordable prices.
- USOF ensures that there is universal non-discriminatory access to quality ICT (Information and Communications Technology) services at economically efficient prices to people in rural and remote areas.
- It was created under the Ministry of Communications in 2002.
- It is a non-lapsable fund, i.e., the unspent amount under a targeted financial year does not lapse and is accrued for next years’ spending.
- All credits to this fund require parliamentary approval and it has statutory support under Indian Telegraph (Amendment) Act, 2003.
- Universal Service stands for universal, interdependent and intercommunicating, affording the opportunity for any subscriber to any exchange to communicate with any other subscriber of any other exchange.
- Subsequently, the scope was widened to provide subsidy support for enabling access to all types of telegraph services including mobile services, broadband connectivity, and creation of infrastructure like Optical Fiber Cable (OFC) in rural and remote areas.
- With access to affordable telecom services in remote and rural areas, the USOF is the right step towards stemming urban migration. This would ensure to generate employment opportunities in the rural areas which would help generate more income.
The USOF proposes to meet its social, economic, political and constitutional objectives which are as follows:
- To extend the telecommunication network.
- To stimulate the uptake of Internet and Communication Technologies (ICT) services.
- To bring the underserved and unserved areas of the country into the telecom spectrum and narrow down the access gap.
- To use the pooled USO levy for an equitable distribution through target subsidies.
-Source: The Hindu, PIB
