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New Telecom Policy 1999

March 30, 1999
New Delhi

6.0 Universal service obligation

The Government is committed to provide access to all people for basic telecom services at affordable and reasonable prices. The Government seeks to achieve the following universal service objectives:

  • Provide voice and low speed data service to the balance 2.9 lac uncovered villages in the country by the year 2002
  • Achieve Internet access to all district head quarters by the year 2000
  • Achieve telephone on demand in urban and rural areas by 2002

The resources for meeting the USO would be raised through a ‘universal access levy’ which would be a percentage of the revenue earned by all the operators under various licences. The percentage of revenue share towards universal access levy would be decided by the Government in consultation with TRAI. The implementation of the USO obligation for rural / remote areas would be undertaken by all fixed service providers who shall be reimbursed from the funds from the universal access levy. Other service providers shall also be encouraged to participate in USO provision subject to technical feasibility and shall be reimbursed from the funds from the universal access levy.

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