Recently, the The Department of Telecommunications (DoT) released draft rules to operationalise the Digital Bharat Nidhi.
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- Digital Bharat Nidhi would replace the erstwhile Universal Service Obligation Fund (USOF)
Universal Service Obligation Fund (USOF)
- About: The USOF was established through an Act of Parliament in December 2003 by amending the Indian Telegraph Act, 1885.
- Objective: To ensure equitable access to telecom services in rural and remote areas at affordable prices, thereby reducing the digital divide between urban and rural areas.
- Funding :The USOF is financed through a levy imposed on the revenue generated by telecom operators. Known as the Universal Service Levy (USL), it is calculated as a percentage of their Adjusted Gross Revenue (AGR) and is collected and deposited into the USOF.
- Administration: The USOF is overseen by the Administrator, appointed by the Central Government to manage the fund. It operates as an attached office within the Department of Telecommunications (DoT), under the Ministry of Communications.
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Introduction of Digital Bharat Nidhi (DBN)
- Objective: Switching from the USOF to the DBN aims to address past challenges and maximize resource utilisation.
- Focus Areas: Support research and development in telecommunication technologies.
- Facilitate pilot projects and consulting services to enhance connectivity.
- Finance telecommunications services benefiting underserved groups, including women and people with disabilities.
- Foster innovation and adoption of domestically developed technologies in the telecom sector.
- Operational Framework of DBN: Under the proposed rules, telecom companies will deposit their payments into the Consolidated Fund of India.
- From there, the DBN will receive funds. The operational model involves appointing an administrator to oversee the fund and selecting DBN implementers through bidding or direct applications.
- These implementers will execute various projects in accordance with DBN guidelines, emphasizing equitable and transparent service delivery.
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- Funding and Allocation Strategies: The administrator will decide funding approaches case by case, offering full, partial, or co-funding options, along with risk mitigation strategies.
- This tailored approach aims to efficiently and effectively tackle varied connectivity challenges across different regions.
- Goals: DBN will fund projects to provide targeted telecom access to underserved groups like women, persons with disabilities, and economically weaker sections, as per draft rules.
- Criteria for DBN Schemes and Projects: Introducing next-generation telecommunication technologies in underserved rural, remote, and urban areas. Enhancing affordability of telecommunication services in these areas.
- Promoting innovation, research, and development.
- Supporting the promotion and commercialization of indigenous technology and associated intellectual property, including creating regulatory sandboxes.
- DBN Implementation Requirements: Any DBN implementer receiving funding for establishing, operating, maintaining, or expanding a telecommunication network must share and provide access to such networks and services on an open and non-discriminatory basis.
- They must comply with guidelines issued periodically by the administrator.
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July 8, 2024