BSNL unlikely to get more from USO fund
April 1, 2008, Thomas K Thomas, The Hindu Business Line
According to this news report, the Department of Telecom (DoT) has made clear that it will not give financial support to Bharat Sanchar Nigam Limited (BSNL) from the Universal Services Obligation (USO) fund for rolling out rural phones in lieu of abolishing access deficit charge (ADC). The Telecom Regulatory Authority of India (TRAI) had suggested that the government should finance BSNL from the USO fund to offset any impact on the telecom from the removal of ADC. DoT, however, maintains that while ADC was a levy imposed on the operators to support BSNL’s existing fixed line telephones in rural areas, USO fund is used for financing new roll outs of telecom services in villages and so both the funds are separate. It appears as though the rural areas are going to pay the price for privatisation.