Universal Service Obligation Fund (USOF) is created for helping to provide universal service, especially in the rural areas and villages. The fund collects from all telecom companies including BSNL @ 5% of the total revenues. First it was only for providing the landlines in the remote areas/villages which was mainly done by BSNL. In order to help the private companies , this was extended to the mobile service also by amending the India Telegraph Act of 1885. While the collections were to the extent of Rs.2000 to 3000 crore in the first few years, now it is about Rs.5000 to 6000. BSNL was paid only about 20 to 25%, due to which the USOF has been accumulated to about Rs.24,000 now. The private companies are putting many suggestions, somehow to get these funds for their development. The collection and disbursement of the USOF year wise is given below:
Year Collection (in crore) Disbursement(in crore)
2002-03 Nil Rs. 300
2003-04 Rs. 2143.22 Rs. 200
2004-05 Rs. 3457.73 Rs. 1314.59
2005-06 Rs. 3215.13 Rs. 1766.85
2006-07 Rs. 3940.73 Rs. 1500.00
2007-08 Rs. 5405.80 Rs. 1290.00
2008-09 Rs. 5515.14 Rs. 1600.00
2009-10 Rs. 5778.00 Rs. 2400.00
2010-11 Rs. 6114.56 Rs. 3100.00
Total Rs. 37,223.92 Rs. 13,471.00
Balance with USOF Rs. 23752.48 crore.
The government should ensure that reasonable amount is allotted to BSNL for its loss making connections in the rural areas.
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