BSNL seeks exemption from USO contribution

Being the only universal service provider in uneconomic areas, the state-owned Bharat Sanchar Nigam Ltd has sought exemption from contributing to the dedicated fund saying it should be reimbursed directly on the basis of cost incurred.

BSNL has many times written to the Department of Telecom that the current universal service obligations policy which seeks to reimburse BSNL after inviting tenders on competitive bidding basis for its rural network roll-out, needs to be amended so that BSNL could avail the reimbursement directly on the basis of the costs quoted in its open tenders, sources said.

BSNL has written to the Telecom Regulatory Authority of India also on the issue, they said.

"We hope that if the revamp of the new telecom policy takes place, as has been stated by Union IT and Communications Minister Dayanidhi Maran, the issue will be addressed," sources added.

If DoT favours the idea, the amendment of the USO policy will have to go the Cabinet for approval.

The current process of reimbursement takes a long time and the money remains blocked till that time, they added. So far BSNL has got little reimbursement from the USO Fund for its rural and remote area network rollout.

BSNL along with other operators is contributing 5 per cent of the adjusted gross revenue towards the USO Fund.