About:

• Universal Service Obligation Fund (USOF) was set up by an Act of Parliament in December 2003 by amending the Indian Telegraph Act, 1885. 
• The main aim of USOF is to provide access to telecom services in a non-discriminatory manner to people in the rural and remote areas at affordable and reasonable prices, thereby bridging the rural-urban digital divide. 
• It is a non-lapsable fund, i.e., the unspent amount under a targeted financial year does not lapse and is accrued for next years’ spending.

Key Objectives

• Ensure that universal services are provided in an economically efficient manner. 
• Ensure that by developing hitherto unconnected areas, the benefits of inclusive growth are reaped by our nation, bringing in its wake rapid socio-economic development and improved standards of living.

Project funded by USOF

BharatNet

• BharatNet is a project of national importance to establish, by 2017, a highly scalable network infrastructure accessible on a non-discriminatory basis, to Provide Broadband Connectivity to all the 2.5 lakhs (approx.) Gram Panchayats.
• The entire project is being funded by Universal service Obligation Fund, which was set up for improving telecom services in rural and remote areas of the country. 
• The objective is to facilitate the delivery of e-governance, e-health, e-education, e-banking, Internet and other services to rural India.

Other Projects include

• Comprehensive Telecom Development plan (CTDP) for North East Region
• Comprehensive Telecom Development plan (CTDP) for Islands. 

Why in News?

The Union Cabinet has given its approval for provision of a Universal Service Obligation Fund Scheme for providing Mobile Coverage in Arunachal Pradesh and two Districts of Assam, namely Karbi Anglong and Dima Hasao, under the Comprehensive Telecom Development Plan (CTDP) for North Eastern Region (NER).

Significance

• The provisioning of mobile services in the remote and difficult uncovered areas of Arunachal Pradesh and two districts of Assam will enhance digital connectivity useful for self-reliance, facilitate learning, dissemination of information and knowledge, skill upgradation and development, disaster management, e-governance initiatives, establishment of enterprises and e-commerce facilities, provision of adequate support to educational institutes for knowledge sharing and availability of job opportunities and fulfilling the vision of Digital India promoting domestic manufacturing and fulfilling the objectives of Atmanirbhar Bharat.

References:

1. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1679338
2. https://vikaspedia.in/e-governance/digital-india/national-optical-fibre-network-nofn
3. https://trai.gov.in/sites/default/files/asean/Presentation/Pankaj_Kumar_S7.pdf