Hi friends, here is the Notes on USOF for AAO Examination Paper IV. USOF which stands for Universal Service Obligation Fund is defined as access to telegraph services to people in rural and remote areas at affordable and reasonable prices. As Assistant Accounts Officer (AAO) Exam is being conducted for employees working in Postal and Telecom together, this Paper often comes to be the toughest one for those from Postal Side. But the truth is that if you can devote a little extra time to study the topic, then this can be a cakewalk. Here we bring you some useful notes on USOF. Do bookmark us and follow Postaffaire for regular updates on AAO Examination.
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Notes on USOF for AAO Examination Paper IV
As per the Indian Telegraph Act 1885 (as amended in 2003 and 2006) Universal Service Obligation is defined as access to telegraph services to people in rural and remote areas at affordable and reasonable prices.
UNIVERSAL SERVICE OBLIGATION FUND (USOF)
Apart from the higher capital cost of providing telecom services in rural and remote areas, these areas also generate lower revenue due to lower population density, low income and lack of commercial activity. Thus normal market forces alone would not direct the telecom sector to adequately serve backward and rural areas. Keeping in mind the inadequacy of the market mechanism to serve rural and inaccessible areas on one hand and the importance of providing vital telecom connectivity on the other, most countries of the world have put in place policies to provide Universal Access and Universal Service to ICT.
The New Telecom Policy -1999 (NTP ’99) provided that the resources for meeting the Universal service Obligation (USO) would be raised through a ‘Universal Access Levy’ (UAL), which would be a percentage of the revenue earned by the operators under various licences. The Universal Service Support Policy came into effect from 01.04.2002. The Indian Telegraph (Amendment) Act, 2003 giving statutory status to the Universal Service Obligation Fund (USOF) was passed by the Parliament in December 2003.The Rules for administration of the Fund known as Indian Telegraph (Amendment) Rules, 2004 were notified on 26.03.2004. As per the Indian Telegraph Act 1885 (as amended in 2003 and 2006), the Fund is to be utilized exclusively for meeting the Universal Service Obligation.
Aim of USOF Fund of India
- Provide widespread and non-discriminatory access to quality ICT services at affordable prices to all people in rural and remote areas.
- Provide an effective and powerful linkage to the hinterland thereby mainstreaming the population of rural and remote parts of the country.
- Ensure that universal services are provided in an economically efficient manner.
- Ensure that by developing hitherto unconnected areas, the benefits of inclusive growth are reaped by our nation, bringing in its wake rapid socio-economic development and improved standards of living.
Beneficiaries of USOF Scheme
People in rural and remote areas of the country where ICT services are not available due to commercial non-viability on account of various combinations of reasons such as:
- Sparse population
- Remoteness of areas
- Absence of supporting infrastructure (power, road etc.)
- Low income of inhabitants
- Insurgency
- Difficult terrain
It is here that USOF Administration steps in to provide subsidy support thereby incentivizing telecom service providers to venture forth and provide services to such target beneficiaries.
FUNCTIONS OF USOF ADMINISTRATION
- To formulate USOF projects under the various streams provided in the Indian Telegraph Rules, in consultation with telecom service providers and various stakeholders.
- To design the bidding process and carry out tendering.
- To enter into implementation agreements with Universal Service Providers (USPs).
- To monitor the implementation of USOF projects and to disburse subsidy in accordance with terms and conditions of USOF agreements.
- To design the format of various records and returns to be maintained by the USPs.
- To carry out post implementation review of USOF Schemes.
- Budgeting and Audit of USOF Activities.
- Interface with international organizations such as ITU, APT and USO Funds of other nations.
Schemes envisaged to be undertaken under USO Funding
As per the Indian Telegraph (Amendment) Rules, 2004 which came into effect on 26.03.04, (and were subsequently amended in November 2006 & July 2008) the following services shall be supported by the Fund, namely :-
Stream-I: Provision of Public Access Services:
(a) Operation and Maintenance of Village Public Telephones (VPT) in the revenue villages identified as per Census 1991 and Installation of VPTs in the additional revenue villages as per Census 2001.
(b) Provision of a second public phone in villages where the population is more than 2000 and no public call office (PCO) is existing.
(c) Replacement of Multi Access Radio Relay Technology (MARR) VPTs installed before the 1st day of April 2002.
Stream-II : Provision of household telephones in rural and remote areas as may be determined by the Central Government from time to time:
(a) For rural household DEL (RDELs) installed prior to 1st day of April, 2002, support towards the difference in rental actually charged from rural subscribers and rent prescribed by Telecom Regulatory Authority of India (TRAI) for such subscribers shall be reimbursed until such time the ADC prescribed by TRAI from time to time takes into account this difference. Also following the phasing out of the ADC Regime, support for a limited duration of three years for wire line RDELs installed prior to 01.04.02.
(b) Support for RDELs installed after 1st day of April, 2002.
Stream III : Creation of Infrastructure for provision of Mobile Services in rural and remote areas. The assets constituting the infrastructure for provision of mobile services shall be determined by the Central Government from time to time.
Stream IV : Provision of Broadband connectivity to villages in a phased manner.
Stream V : Creation of General Infrastructure in rural and remote areas for development of telecommunication facilities. The items of General Infrastructure to be taken up for development shall be determined by the Central Government from time to time.
Stream VI: Induction of new technological developments in the telecom sector in rural and remote areas: Pilot Projects to establish new technological developments in the telecom sector, which can be deployed in the rural and remote areas, may be supported with the approval of the Central Government.
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