USOF Scheme for Aspirational Districts in 5 states

WHY IN THE NEWS?

Recently, the Union Cabinet has approved the Universal Service Obligation Fund (USOF) scheme for provisioning of 4G-based mobile services in uncovered villages of aspirational districts across five states — Andhra Pradesh, Chhattisgarh, Jharkhand, Maharashtra, and Odisha.

• NITI Aayog’s Aspirational Districts programme aims to quickly and effectively transform 112 most under-developed districts across the country.

About:

• It envisages providing 4G based mobile services in the 7,287 uncovered villages of 44 Aspirational Districts across five States. It would be funded by the Universal Service Obligation Fund (USOF).
• It will enhance digital connectivity useful for self-reliance, facilitate learning, dissemination of information and knowledge, skill up-gradation and development, disaster management, e-Governance initiatives, the establishment of enterprises & e-commerce facilities, etc.
• It seeks to fulfil the vision of Digital India promoting domestic manufacturing and fulfilling the objectives of Atmanirbhar Bharat etc.

Universal Service Obligation Fund (USOF):

About:

• USOF ensures that there is universal non-discriminatory access to quality ICT (Information and Communications Technology) services at economically efficient prices to people in rural and remote areas.
• It was created under the Ministry of Communications in 2002.
• 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.
• All credits to this fund require parliamentary approval and it has statutory support under Indian Telegraph (Amendment) Act, 2003.

Objectives:

• Economic: Network extension & stimulate uptake of the ICT services
• Social: Mainstreaming the underserved & un-served areas/groups by bridging the Access Gap.
• Political: to enable citizens to exercise their political rights in an informed way and
• Constitutional: Equitable distribution of the fruits of the telecom/digital revolution and fair allocation of national resources (pooled USO levy) via targeted subsidies.

Significance:

• The rural areas get the Village Public Telephones (VPTs), Rural Community Phones (RCPs), Rural Household Telephones (RDELs), and mobile infrastructure.
• With access to affordable telecom services in remote and rural areas, it can help stemming urban migration and ensure generating employment opportunities in the rural areas.
• The increased awareness of ICT services in the rural areas and growing participation of the rural people will help promote facilities related to health, education etc.
• It can ensure the growth of Rural Business Process Outsourcing (BPOs-Rural) and Rural Knowledge Process Outsourcing (KPOs-Rural.)
• USOF is also perceived as the right tool to extend the benefits of the government schemes aimed at the social development of the rural population.