Telecom Technology Development Fund Scheme

Why in news?

• Universal Service Obligation Fund (USOF), a body under the Department of Telecommunications, officially launched Telecom Technology Development Fund (TTDF) Scheme.

About USOF:

• The Indian Telegraph (Amendment) Act, 2003 gave statutory status to the Universal Service Obligation Fund (USOF)
• The USOF’s main aim is to provide universal telecom services and ensure that even the unconnected areas in the country reap the benefits of inclusive development.

How does it work?

• The Universal Service Obligation Fund (USOF) is the pool of funds generated by the 5% Universal Service Levy that is charged upon all telecom fund operators on their Adjusted Gross Revenue.
• These are then deposited into the Consolidated Fund of India, and prior parliamentary approval is required for dispatching.

Reason for launching ‘Telecom Technology Development Fund’:

• The draft telecom bill has said that the USOF shall be referred to as the “Telecommunication Development Fund”.
• The USOF has largely been used to aid rural connectivity. But the objective of TDF is also to boost connectivity in underserved urban areas, R&D, skill development etc.

Salient features of Telecom Technology Development Fund:

• Aim:
  • To fund R&D in rural-specific communication technology applications and form synergies among academia, start-ups, research institutes, and the industry to build and develop the telecom ecosystem.
  • To promote technology ownership and indigenous manufacturing, create a culture of technology co-innovation, reduce imports, boost export opportunities and creation of Intellectual Property.
  • To develop standards to meet countrywide requirements and create the ecosystem for research, design, prototyping, use cases, pilots, and proof of concept testing
• Function:
  • The scheme entails grants to Indian entities to encourage and induct indigenous technologies tailor-made to meet domestic needs.

PRACTICE QUESTION:

Consider the following statements regarding ‘Universal Service Obligation Fund’:

1. The funds come from Universal Service Levy (USL), which is charged from all the telecom operators on their Adjusted Gross Revenue.

2. USOF has given statutory status under Indian Telegraph Act.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

                          C

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