Date:18/08/2004 URL: http://www.thehindubusinessline.com/2004/08/18/stories/2004081802750600.htm

Back DoT invites bids for setting up village phones

Our Bureau

New Delhi , Aug. 17

THE Department of Telecommunications has invited bids from operators to offer Village Public Telephones with support from Universal Service Obligation Fund. Bids have been invited for setting up phone in villages without any public phone facility yet.

Of the 6.07 villages in India, about 5.22 villages have been covered. Of this, 5.09 lakh villages have been covered by the State owned Bharat Sanchar Nigam Ltd. All basic and cellular operators would be eligible for bidding for setting up telecom facility in the remaining villages.

USO fund was created in April 2002 with an objective to reach communication services in rural India. All telecom service providers contribute about 5 per cent of their annual revenues towards this fund.

The implementation of USO is divided into two. First, provision of public telecom and information services and second, provision of household telephones in remote areas.

This also envisages provision of Rural Community Phones (RCPs) in specified villages where population exceeds 2,000 after achieving the target of one Village Public Telephone in every village. These RCPs may be provided in public places such as schools, primary health centres with STD facility. The support from USO Fund will include both annual capital recovery as well as annual operating expenses. Last year Rs 200 crore was disbursed from the fund primarily to BSNL for rolling out telephones in rural areas.