UNIVERSAL SERVICE OBLIGATION FUND (Syllabus: GS Paper 3 – Economy)

Context: The Universal Service Obligation Fund (USOF) renamed Digital Bharat Nidhi in the new Telecom Bill.

Universal Service Obligation Fund (USOF)

• Aim: To provide for quality and affordable mobile and digital services across the rural and remote areas of the country.
• Headed by: Administrator, USO Fund who is appointed by the Central Government, for the administration of the fund.
• Origin of Concept: Introduced by Rowland Hill in 1837 with his postal reforms. 

oThe postal reforms included uniform rates across the United Kingdoms (UK) and prepayment by sender via postage stamps.

• Functions

oFormulating and executing USOF projects or schemes

oMonitoring the implementation of Universal Service Obligation (USO) Fund projects and schemes

oDesigning an intelligent subsidy support model for reducing or closing the viability gap

oPost-implementation review of USOF projects and schemes

oLeveraging of innovative and emerging new technologies