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BSNL for Better Service (5) –  USO Fund support to BSNL – Reimbursement of Licence Fee

At the time of   corporatisation, it was assured  that BSNL   will be financially supported by the Government. The Universal Service   Obligation Fund(USOF) came in to force from  2002. It collects the Universal Service Levy   (USL) from service providers at a defined percentage of Adjusted Gross   Revenue (AGR) as a component of Licence Fee. The collections of USL are credited   to the Consolidated Fund of India and allocation of funds to USOF are done by   approval of the Parliament. Since the BSNL alone was providing landline   services in rural and remote areas, it alone was eligible for the support   from USOF. But later, by  amending  the Indian Telegraph Act 1886, the   eligibility for USOF was extended to the private telecom companies also. While   the collections through USL were substantial, only a small portion of the   same was provided to the BSNL. The balance amount was kept with USOF. So far   till 2010-11, BSNL was granted only Rs. 11,639.62 crore, despite the fact   that it has got a lot of funds available with it. Further, BSNL is losing much   more than that amount for providing the loss making connections and   maintaining them.Another assurance   was that BSNL will have to pay the Licence Fee like other companies, but the amount   will be returned. Reimbursement was given to BSNL, but after a few years it   was stopped. For the last 4-5 years licence fee has not been refunded.

Thus as can be   seen, the assurances on the three issues, payment of collected ADC to BSNL,   liberal support from USOF and refund of Licence Fee have either been   withdrawn or stopped. If these amounts have been given, most probably, the   company would not have posted loss.

The Forum of BSNL   Unions / Associations have demanded the GoM on Revival of BSNL & MTNL’   that all these assurances promised and later withdrawn/reduced may be   restored which will help BSNL in its advance march.