Why is it in the News?

Telecom services providers have urged the Ministry of Finance to suspend the Universal Service Obligation Fund (USOF) till the existing corpus is exhausted.

About Universal Service Obligation Fund (USOF):

• The USOF was established through a parliamentary amendment to the Indian Telegraph (Amendment) Act, 2003.
• Its primary goal is to ensure non-discriminatory access to affordable telecom services in rural and remote areas, thereby narrowing the digital gap between urban and rural regions.
• For financially unviable rural and remote areas, the USOF provides subsidy support in the form of Net Cost or Viability Gap Funding (VGF).
  • This encourages telecom service providers to expand their services to these areas, enhancing telecommunications and broadband accessibility.
• Funding Mechanism: Telecom operators contribute to the USOF through a Universal Service Levy (USL), a percentage of their Adjusted Gross Revenue (AGR).
• Administration: The USOF is overseen by the Administrator, USO Fund, appointed by the Central Government.
  • It operates as an attached office under the Department of Telecommunications (DoT), Ministry of Communications.

Telecom Technology Development Fund (TTDF):

• Launched by USOF on October 1st, 2022, the TTDF Scheme targets domestic companies and institutions engaged in designing, developing, and commercializing telecommunication products and solutions.
  • The scheme aims to facilitate affordable broadband and mobile services in rural and remote areas.
• The initiative fosters connections between schools and diverse volunteers from the Indian Diaspora, including young professionals, retired teachers, retired government officials, NGOs, private sector companies, corporate institutions, and more.
• Under the scheme, USOF is committed to developing standards to meet nationwide requirements and establishing an ecosystem for research, design, prototyping, use cases, pilots, and proof-of-concept testing.
  • The scheme provides grants to Indian entities, encouraging the integration of indigenous technologies tailored to domestic needs.

Cellular Operators Association of India (COAI)

• The Cellular Operators Association of India (COAI), was constituted in 1995 as a non-governmental society registered under the Societies Act, 1860.
  • The Association is dedicated to the advancement of modern communications through the establishment of a world-class cellular infrastructure and to delivering the benefits of affordable mobile communication services to the people of India.
  • Today it is regarded as an important interface between the main stakeholders of the Indian Telecom Ecosystem, i.e. Government, Operators, Consumers, Equipment Manufacturers, and Content Providers.
• COAI provides a forum for discussions and exchange of ideas between Service Providers, Policy Makers, Regulators, Technologists, etc., who share a common interest in the development of mobile telephony in the country.