• UGI USER
  • Jul 08, 2024
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“DIGITAL BHARAT NIDHI: REVAMPING RURAL TELECOM CONNECTIVITY AND FUNDING SCOPE”

Why in the news?

  • The Digital Bharat Nidhi aims to improve rural telecom connectivity, replacing the underutilized Universal Service Obligation Fund (USOF).
  • Draft rules propose wider scope for DBN, including funding for R&D, pilot projects, and targeted access in underserved areas.
source:corpseed

About Digital Bharat Nidhi:

  • Chapter V of the Telecommunication Act, 2023 establishes the Digital Bharat Nidhi.
  • It replaced the Universal Service Obligation Fund (USOF) under the Indian Telegraph Act, 1885.
  • Credit: All payments for telecommunication services will be credited to the fund.
  • Proceeds are first deposited in the Consolidated Fund of India and then allocated as per Parliament’s appropriations.
  • Support R&D, pilot projects, and consultancy for telecom services and technologies.
About Universal Service Obligation Fund (USOF):

  • The Universal Service Obligation Fund (USOF) ensures universal access to quality ICT services at economically efficient prices in rural and remote areas.
  • Established in 2002 under the Ministry of Communications, it operates as a non-lapsable fund.
  • Unspent amounts in a fiscal year carry over for future spending.
  • All contributions to USOF require parliamentary approval.
  • It is supported by the Indian Telegraph (Amendment) Act, 2003, providing statutory backing.