Digital Bharat Nidhi - ECONOMY
News: The Department of Telecommunications (DoT) released draft
rules to operationalise the Digital Bharat Nidhi (DBN), by the
central government at increasing telecom connectivity in rural areas.
What’s in the News?
About
·Digital Bharat
Nidhi was established through the Telecommunications
Act, 2023. It would
replace the erstwhile Universal Service Obligation Fund (USOF).
·USOF is
a pool of funds generated by a 5 percent Universal Service Levy charged upon
all the telecom fund operators on their Adjusted Gross Revenue (AGR).
·USOF was established in 2003, and
has been criticized for its underutilization.
·Between 2017 and 2022, the
government had collected Rs 41,740 crore as part of contributions made by
telcos towards the USOF, and only 72 percent of it has been
utilized.
·The money would be used to
fund the expansion of telecom networks in remote and rural areas, where
private companies resist offering their services.
Functions of Digital Bharat Nidhi
·As per the Telecom Act,
contributions made by telecom companies towards the Digital Bharat Nidhi will
first be credited to the Consolidated Fund of India (CFI).
·The Centre will deposit the collected funds to the
DBN from time to time.