Universal Service Obligation Fund

Universal Service Obligation Fund

In New Telecom Policy 1999, Government expressed its commitment to provide access to all people for basic telecom services at affordable and reasonable prices under Universal Service Obligation (USO). Digital Bharat Nidhi (erstwhile USOF) was established under the Indian Telegraph (Amendment) Act, 2003 w.e.f. 01.04.2002. As per ‘The Telecommunications Act, 2023’ the Universal Service Obligation Fund, has become the Digital Bharat Nidhi (DBN). The DBN has mandate to support universal service through promoting access and delivery of telecommunication service in underserved rural, remote and urban areas.

At present, as per the License agreement, the license fee is based on Adjusted Gross Revenue (AGR) which includes USO Levy. Telecom Service Providers are depositing the Licence Fee as per license agreement.

During the last five financial years (2019-20 to 2023-24), total 5,262 towers were installed and an amount of Rs. 8,311 Cr. was spent including Rs. 144 Crore for Uttar Pradesh. The State/UT-wise details of funds spent from USO Fund during the said period is available at the USOF website (https://usof.gov.in).

This information was given by the Minister of State for Communications, Dr. Pemmasani Chandra Sekhar in a written reply to a question in Rajya Sabha today.