Telcos' rural services to come under scanner

Telecom services funded by the Centre through the Universal Service Obligation (USO) levy will come under increased surveillance as it is now mandatory for all operators to disclose details on their activities in rural areas on their website.

In a directive to all operators, especially Bharat Sanchar Nigam Ltd, the Telecom Regulatory Authority of India (Trai) has asked them to post all details of USO-related activities on their websites by November 15.

"The move will bring about transparency in the disbursal of Universal Service Obligation Fund (USOF), contributions of operators towards the fund, projects undertaken and the technology used," a Trai official told Business Standard.

All service providers contribute about 5 per cent of their revenue towards the USOF, which is used to provide subsidy support for public telecom and information services, including household telephones in rural and remote areas. Under this fund, operators are awarded contracts to set up rural telecom infrastructure on the basis of competitive bidding.

Trai has also directed all operators to submit all USO-related information to the fund administrator on a monthly basis.

"It is necessary to evolve a transparent mechanism for activities supported from USOF, viz village public telephones, rural community phones, public telecom and information centres, high speed public telecom and information centres and rural direct exchange lines. Trai has to ensure effective compliance of universal service obligations as per the Trai Act," the regulator said in its directive.

The regulator added it had initiated this directive as "it was concerned about the growth of telecom services in rural and remote areas".

"Effective disbursement of USOF shall accelerate pace of growth of telecom services in rural and remote areas," Trai said.

Private operators welcomed the directive and said it would enable the public to "verify BSNL's claims on rural telephony". When contacted, BSNL officials said the PSU would comply and added it was routinely providing information on its USO-related activities to both the government and the fund administrator.