FINANCING RURAL CONNECTIVITY THROUGH USOF SUPPORT Archana.G.Gulati Jt Administrator (Finance) USOF Email: [email protected]@gmail.com .

FINANCING RURAL CONNECTIVITY THROUGH USOF SUPPORT

Archana.G.Gulati

Jt Administrator (Finance) USOF

Email: [email protected]

www.usof.gov.in

JA(F) Universal Service Fund of India

RURAL INDIA 0.6 Million Villages lacking basic infrastructure

(schools, colleges, hospitals, government services, non-agricultural employment opportunities)

833 Million rural Indians,70% of population

Primarily dependant on agriculture/allied activities ( 14.2% of GDP)-characterized by low productivity

Can we afford to neglect Rural India?

RURAL CONNECTIVITY-WHY BOTHER?

A.G.Gulati (JA(F) USOF)


THE IMPORTANCE OF ICT CONNECTIVITY

MAINSTREAMING OF RURAL AREAS Reducing isolation Awareness Education, Health, Market Access, Information E-Government Services Knowledge, Productivity, Employment

ECONOMIC DEVELOPMENT

SOCIETAL TRANSFORMATION Broadband access especially is important when other infrastructure is

inadequate ( roads, administrative machinery etc).

Access to multi media content important as literacy level is less than 70%


THE NEED FOR USO IN TELECOM

ACTUAL ACCESS

GAP MARKET EFFICIENCY

GAP

TELECOM

COVERAGE

Isolation

Poverty

IDEAL COVERAGE

ACTUAL ACCESS GAP

WHY LIBERALISATION AND COMPETITION ARE NOT ENOUGH FOR RURAL/REMOTE AREA PENETRATION

SCATTERED POPULATION

LOW INCOME

LOW PECEIVED UTILITY (BB) HENCE USAGE

LACK OF COMMERCIAL/INDUSTRIAL CUSTOMERS

LACK OF ROADS, POWER ETC

DIFFICULT TERRAIN,

INSURGENCY

HIGHER CAPEX AND OPEX, LOW ARPUs


BOTH DEMAND AND SUPPLY SIDE CONSTRAINTS

WHAT IS USOF’S ROLE?

INCENTIVISE TELECOM SERVICE PROVIDERS TO VENTURE INTO RURAL/REMOTE AREAS

FACILITATE RURAL ROLL OUT

REDUCE COSTS AND HENCE END USER PRICES

INCREASE AFFORDABILTY

HOW?SUBSIDY SUPPORT TO REDUCE/CLOSE VIABILITY GAPPURSUANCE & LIASION WITH STATE AUTHORITIESENCOURAGE & SUPPORT ADOPTION OF INNOVATIVE SOLUTIONS TO OVERCOME CONSTRAINTS E.G. POWERENCOURAGE SHARING OF INFRASTRUCTURE AT DISCOUNTED RATESBUILD IN SPECIAL TARIFF PLANS FOR TARGET BENEFICIARIES


A.G.Gulati(JA(F) USOF)

DEFINITION OF USO

OBLIGATION TO PROVIDE ACCESS TO TELEGRAPH [TELECOMMUNICATIONS] SERVICES TO PEOPLE IN RURAL AND REMOTE AREAS AT AFFORDABLE AND REASONABLE PRICES.


USOF IN INDIA

STATUTORY FUND (ITA (AMENDMENT)2003) CAME INTO EXISTENCE AS ON 1.4.02 NON LAPSABLE FUND USL AS 5% OF ADJUSTED GROSS REVENUE OF TELECOM

SERVICE PROVIDERS ITR (AMENDMENT) 2004 GOVERNS SCOPE AND

IMPLEMENTATION ADMINISTRATOR APPOINTED ON 1.6.2002. ATTACHED OFFICE OF THE DOT ASSISSTED BY AN INTER- MINISTERIAL ADVISORY

COMMITTEE: (REPRESENTATION FROM IIT CHENNAI, IIM A, MINISTRY OF FINANCE, MINISTRY OF LAW AND JUSTICE, PLANNING COMMISSION, TRAI AND DOT )

SUBSIDY DISBURSEMENT AND MONITORING BY 22 CCA OFFICES ACROSS INDIA

More details available at www.usof.gov.in


SCOPE OF USOF IN INDIA

PUBLICACCESS, INDIVIDUAL HOUSEHOLD LINES AND TELECOM INFRASTRUCTURE IN IDENTIFIED RURAL/REMOTE AREAS.

TILL NOVEMBER 2006, ITR 2004 LIMITED USF ACTIVITIES TO ONLY ‘BASIC’ SERVICES:

STREAM I: PROVISION OF PUBLIC TELEPHONE

SERVICES (Village Public Telephones & Rural Community Phones)

STREAM II :PROVISION OF HOUSEHOLD TELEPHONES IN NET HIGH COST RURAL/REMOTE AREAS.(Rural Household DELs)


SCOPE OF USOF IN INDIA contd

IN NOVEMBER 2006 RULES GOVERNING USOF WERE AMENDED TO ALLOW USF TO SUPPORT MOBILE SERVICES AND BROADBAND CONNECTIVITY.

FOLLOWING NEW STREAMS INTRODUCED BY AMENDMENTS TO ITA AND ITR :

STREAM III: CREATION OF INFRASTRUCTURE FOR PROVISION OF MOBILE SERVICES IN RURAL AND REMOTE AREAS.

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 TELECOM FACILITIES

STREAM VI: INDUCTION OF NEW TECHNOLOGICAL DEVELOPMENTS IN THE TELECOM SECTOR IN RURAL AND REMOTE AREAS

FUND POSITION & UTILISATION

AS ON 31.3.11: POTENTIAL FUNDING BY WAY OF USL BALANCE: Rs 16,803.84 Cr

DISBURSEMENTS AS ON 31.3.11: Rs 13471.44 Cr

DISBURSESMENT AS ON DATE: Rs 15046.52 Cr

USL LEVY FIRST CREDITED TO CONSOLIDATED FUND OF INDIA

AVAILABLE TO USOF THROUGH BUDGETARY PROCESS

UTILISATION SUBJECT TO GOVERNMENT OF INDIA RULES AND REGULATIONS ON FINANCIAL PROPRIETY

ACCOUNTING: AS PER CGA REGULATIONS

AUDIT: C&AG

USOF MUST WEIGH:

COSTING, BENCHMARKING & SUBSIDY MODELLING

PAYMENT TERMS & CONDITIONS,VERIFICATION /INSPECTION

REMEDIAL ACTION

SUBSIDY SCHEME DESIGN

SUBSIDY SCHEME DESIGN

A UNIQUE PROGRAMME

ALL INDIA NETWORK OF DEPARTMENTAL OFFICEs FOR IMPLEMENTATION AND SUBSIDY DISBURSEMENT

LEAKAGES AVOIDED GROUND LEVEL IMPLEMENTATION IS CLOSELY

MONITORED REGULAR POST PAYMENT VERIFICATION EFFECTIVE USE OF SUBSIDY DOUBTFUL CLAIMS WITHHELD FOR FURTHER

VERIFICATION DISALLOWED AMOUNT:MORE THAN Rs 900 Cr


Karnataka

Tamil Nadu

Orissa

M.P

EFFECTIVE IMPLEMENTATION

Punjab

U.P(W)

M.P

ENSURING EFFECTIVENESS OF USOF SCHEMES


USOF HQ

TSPs

CCAs


VPTs/RCPs ACROSS INDIA

MAHARASHTRA ASSAM


RAJASTHAN

USOF

ORISSA

5.8 LAKH VPTs, 40,694 RCPs

ORISSA


NAGALAND

USOF

RAJASTHAN

PUNJAB

RURAL DELS

TAMIL NADU

ORISSAORISSA

AJASTHAN

U.P(W)

USOF

TAMIL NADU

RURAL DELS

NAGALAND

PUNJAB

U.P(E)

RAJASTHN

79.27 LAKH RDELs

USOF

MOBILE INFRASTRUCTURE

WEST BENGALUSOF

TAMIL NADU

7295(7353) MOBILE TOWERs

New Mobile Users-Chhattisgarh

USOF

WIRE LINE BROAD BAND

WEST BENGAL

JHARKHAND

3.2 (8.9) lakh Broadband Connections


PILOT SCHEME FOR SOLAR MOBILE CHARGING FACILITIES (SMCFs) IN VILLAGES

LOCAL ENTREPRENEURSHIP MODEL CHEAP CHARGING FACILITY FOR RURAL AREAS

RPST SCHEME Provides rural SHGs with broadband enabled terminals

capable of secure financial transactions -on pilot basis in Rajasthan & H.P.

VAS for Rural Public/ Livelihood for Rural Women RPST Enabled Services: Women

Purchase of Tickets for Roadways, Railways and Airways

Financial Services Insurance ServicesRural Banking Mobile Recharge

JA(F) USOF

CONNECTIVITY IS NOT AN END IN ITSELF


CONNECTIVITY MUST BE SUPPORTED BY CAPACITY AND

CONTENT


USOF’S SPECIAL INITIATIVES

SANCHAR SHAKTIPilot Project Scheme for Mobile VAS & Livelihood related ICT

Skills for Rural Women’s SHGsLaunched on 7.3.11

SANCHAR SHAKTI Scheme initiated with the objective of improving rural SHGs’

access to skills, knowledge, financial services and markets through mobile connectivity and Value Added Services

Involves provision of customized content: information on markets, financial literacy, vocational training, health, social issues, government schemes to improve livelihoods, awareness and self confidence through SMS, IVRS and toll free query systems

Multi-stakeholder approach whereby TSPs, VAS content providers, NGOs, USOF and NABARD work in coordination towards connectivity, content and capacity building of SHGs

MoUs signed for 9 Mobile VAS pilot projects dealing with SHGs working with agriculture, livestock rearing, bee-keeping, textiles handicrafts, cottage industry etc

States covered are Maharashtra, Tamil Nadu, Puducherry, Kerala, U.P, Uttaranchal, Andhra Pradesh, Rajasthan

http://www.usof.gov.in/usof-cms/gender.htm


PILOT PROJECT SCHEME FORACCESS TO ICTS FOR PERSONS WITH DISABILITIES (PwDs) IN RURAL INDIA


http://www.usof.gov.in/usof-cms/disabled.htm


FUTURE PLANS

BASED UPON :

THE SUCCESS OF PRESENT SCHEMES LESSONS LEARNT NEW TECHNOLOGIES UNIQUE AND EMERGING NEEDS OF

RURAL & REMOTE AREAS MARKET CONDITIONS PREVAILING

THE ROAD AHEAD…

COVERING REMAINING UNCOVERED RURAL AREAS WITH MOBILE SERVICES

NOFN TO CONNECT 2.5 LAKH VILAGE PANCHAYATs WITH OFC & PROVIDE NON DISCRIMINATORY ACCESS TO ALL TSPs

WIRELESS BROADBAND SUPPORT FOR POWERING OF TELECOM

INSTALLATIONS THROUGH RENEWABLE ENERGY

RDELs in Tamil Nadu

RDEL in U.P(East)VPT in Haryana

VPT in Karnataka

RDEL in Punjab

THANK YOU!

FINANCING RURAL CONNECTIVITY THROUGH USOF SUPPORT Archana.G.Gulati Jt Administrator (Finance) USOF Email: [email protected]@gmail.com .

Documents

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