The Department of Telecom has decided to provide resources from the Universal Services Obligation (USO) Fund to operators providing broadband in rural areas. This decision comes on the heels of an announcement that the fund would support mobile infrastructure in villages.
DoT has formed a committee to consider amending the Indian Telegraph Act 1885 to accommodate monetary support for broadband services. The committee comprises the USO Fund Administrator and seven DoT officials.
The decision to include broadband services will benefit companies such as Bharti Airtel, Reliance Communications, Bharat Sanchar Nigam Ltd, and smaller operators such as Hathway and Dishnet. The change in the fund comes after suggestions made by the Telecom Regulatory Authority of India (TRAI) and demands from industry players.
The growth of broadband in the country has been slower than hoped, with just 1.5 million subscribers. This figure is far short of last year's target of 3 million users by December 2005.
DoT is still utilising the USO Fund to finance fixed line projects in villages. All the telecom operators contribute 5% of their annual revenues towards the fund. At the end of 2005-06 the fund had US$ 1.57 billion in financial resources.
Source: The Hindu Business Line - WDR/Intelecon Regulatory News
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