SUBSIDY DISBURSEMENT FROM THE UNIVERSAL SERVICE OBLIGATION FUND

The implementation of   Universal    Service Support Policy involves financial support from Universal Service Obligation Fund to meet the net cost of providing the specified Universal Service Obligation. This covers both public access as well as provision of household telephones in rural and remote areas. Selection of the Universal Service Provider is through a bidding process. Successful bidders are eligible for support from Universal Service Obligation Fund after scrutiny of detailed claims submitted by them.  The CCA is responsible for verification of the claims and release of payments.  They are also responsible for inspection and monitoring, for establishing the veracity of claims.

 Click Here  For presentation on USO in Haryana

 Click Here For Data on Subsidy Disbursement Amount/DELs

Click Here  For Details of Subsidised Connections in Haryana

As a Subsidy Claimant under USO in Haryana Circle you may like to   know about:

1.   Universal Service Obligation 

2.    Role of the CCA Office in Subsidy disbursement 

3.    Transfer of Work relating to USO to CCA Office 

4.    Subsidy Support in Haryana and STATISTICS

5.    Salient Features of USO Agreements in Haryana 

6.    Check points for Claim Preparation

7.   Table Showing agreements under which subsidy is 
        disbursed in Office of JCCA Haryana

8.    IMPORTANT NOTICES FOR SERVICE PROVIDERS CLAIMING
        SUBSIDY  UNDER VARIOUS AGREEMENTS   

        (FOR UP TO DATE STATUS  ON CLAIMS USPs MAY PLEASE CHECK MAILBOX)

NOTE: All Terms and Conditions of USO Agreement are to be followed strictly and this page is only to serve as a guide for Service Providers.

1. About USO

The Universal Service Support Policy came into effect from 1.4.2002. The Indian Telegraph (Amendment) Act 2003 giving statutory status to the Universal Service Obligation Fund (USOF) was passed by both Houses of Parliament in December 2003. Deemed to have come into effect from 1st April 2002, the Fund is to be utilized exclusively for meeting the Universal Service Obligation and the balance to the credit of the Fund will not lapse at the end of the financial year. Credits to the Fund shall be through Parliamentary approvals. The Rules for administration of the Fund have also been notified on 26.3.2004

The Universal Service Obligation Fund is headed by the Administrator, USF. The Administrator is empowered to formulate procedures for implementation of the USO and disbursement of funds from the USOF. His office functions as an Attached office of the Department of Telecom, Ministry of Communications & IT.

The  Universal Service Levy  is presently 5% of the Adjusted Gross Revenue (AGR) of all telecom service providers except the pure value added service providers like Internet, Voice Mail, E-Mail service providers etc. As per the Rules, the following activities are to be supported by the USOF, namely:-

Stream I: Provision of Public Telecom and Information Services -

a)         Operation and Maintenance of Village Public Telephones (VPTs) in the villages identified as per Census 1991 and installation of VPTs in the additional revenue villages as per Census 2001.

b)      Provision of additional Rural Community Phones (RCPs) in villages with population more than 2000, after achieving the target of one VPT in every village.

c)       Replacement of Multi Access Radio Relay (MARR) based VPTs installed before 1.4.2002.

d)      Up-gradation of  a Public Telephone to Public Telecom and Information Centers (PTICs) in villages with population more than 2000, for providing  data applications including FAX, e-mail, internet besides voice-telephony.

e)       Installation of High Speed PTICs (HPTICs) for providing additional facilities including tele-education and tele-medicine at Block Headquarters and in villages with a population exceeding 2000.

Note: Unless otherwise specified by the Central Government, the Secondary Switching Area (SDCA) shall be taken as a unit for the purpose of arriving at the Net Cost for activities specified in items (a) to (e) of stream I.

Stream-II: Provision of household telephones in rural and remote areas.

For household DELs installed prior to 1st day of April, 2002, the difference in rental actually charged from rural subscribers and rent prescribed by TRAI of India for such subscribers shall be reimbursed until such time the Access Deficit Charges prescribed by TRAI from time to time take into account such difference.

For household DELs installed after 1st day of April, 2002, Capital Recovery, Operational Expenses and Revenue shall be taken into account to determine the Net Cost.

Note: Unless otherwise specified by the Central Government, the Short Distance Charging Area shall be taken as a unit for the purpose of arriving at the Net Cost for activities specified in item (b) of stream II



For more information on USO Fund please visit the site www.dotindia.com

2. Role of the CCA Office

The implementation of   Universal    Service Support Policy involves financial support from Universal Service Obligation Fund to meet the net cost of providing the specified Universal Service Obligation. This covers both public access as well as provision of household telephones in rural and remote areas. Selection of the Universal Service Provider is through a bidding process. Successful bidders are eligible for support from Universal Service Obligation Fund after scrutiny of detailed claims submitted by them.  The Controller of Communication Accounts is responsible for:

1. Verification of the claims and release of payments. 
2.  Inspection and monitoring, for establishing the veracity of claims.
3. Proper accounting of all transactions relating to the USF Fund
4. CCAs submit detailed returns and reports to USF Administration at DOT HQ regarding receipt of claims from Service Providers, settlement of claims, requisition of funds, disbursement of subsidy and monitoring status and reports in the prescribed formats  and as per schedule  prescribed by DOT HQ.

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3. Transfer of Work to CCA Offices

The work relating to USF commenced in the CCA Offices w.e.f the Claims for the Quarter ending 31.12.03. Initially vide letter No: 30-15/2002-USF (VolII) dated 5.2.04 disbursement of Subsidy towards (a) Operation and Maintenance of Village Public Telephones (VPTs) and (b) Replacement of MARR VPTs (VPTs to be replaced w.e.f 1.7.03) was transferred to CCA Offices. This included the work of monitoring of information furnished in the claims. Subsequently the work relating to disbursement of Subsidy towards (c) Replacement of MARR VPTs replaced between 1.4.02 and 30.6.03 as well as (d) Provision of Rural Community Phones and (e) Rural Household Dels was given to CCA offices.

 

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4. Subsidy Support in Haryana

  In Haryana, the Office of the JCCA is at present disbursing subsidy under various agreements as detailed below:

          Click here to view  Disbursement  Related Data      

5. Salient Features Of Agreements

1. OPERATION AMD MAINTENANCE OF VILLAGE PUBLIC TELEPHONES

·                    The Agreement is valid for a period of seven years.

·                    SSA-wise technology specific Representative Rate for which subsidy is to be given forms part of the agreement.

·                    For wireless technologies, WLL rate shall apply wherever no Representative Rate has emerged, unless specifically allowed.

·                    The VPTs on any wireless technology shall be provided using Fixed wireless Terminals (FWTs)

·                    Review of representative Rate in the third year taking into account, inter-alia, the increase in revenue on account of provision of STD facility.  The revised rates to be applicable from the 4^th  year onwards (already undertaken)

·                    Disbursement of subsidy to be made quarterly undertaken).

·                    Claims to be submitted within 30 days from the close of the quarter. (revised from the earlier 15 days).

·                    For amounts received in excess of 10% of the subsidy due for a financial year, the entire amount paid in excess shall be recovered along with an interest from the date of disbursement at the Prime Lending Rate of SBI.

·                    Deduction of  pro-rata  subsidy on account of  telephones remaining faulty for more than seven days in a quarter.  In cases where the VPT remains faulty for 45 days or more in a quarter, no subsidy for the entire quarter shall be allowed.

·                    With effect from the quarter ending 30.09.2004, VPTs that remain disconnect -ed  on account of non-payment and VPTs that  register no incremental meter reading during the entire quarter shall not qualify for any support for that quarter vide letter No. 30-101/2002-USF dated 14-09-2004.

·                    MARR VPTs on their replacement will not be eligible for subsidy under this Agreement.

·                    The Universal Service Provider may change the location of VPTs to provide better access to the public within the same village.  No payments for relocating the VPTs will be made from USOF on the expenditure incurred on relocation.

·                    Performance Bank Guarantee (PBG) equivalent to one quarter’s subsidy   payable for all the VPTs in the Service Area for which the Agreement has been entered into.  For BSNL the requirement for submission for PBG has been waived as long as it is a 100% Govt. owned company.  The PBGs are presently being kept at USF HQs.

·                    The Agreement for J&K Service Area will be renewed Yearly.

2. REPLACEMENT OF MARR VILLAGE PUBLIC TELEPHONE

·                    Subsidy for a VPTs shall be for seven years from the date of its replacement or up to the date of termination of Agreement, whichever is earlier.

·                    Roll-out obligation prescribing 50% of the MARR VPTs in the Service Area to be replaced within one year from the effective date of the Agreement and the balance within two years from the effective date of the Agreement.  The period has been extended to 3 years vide letter No. 30-107.2002-USF dated 21/10/2004.

·                    Provision of Liquidated Damages in case of non-fulfillment of the roll out obligation.  The liquidated damages shall be at 10% of the annual subsidy payable for those VPTs for each calendar month of delay or part thereof, subject to a maximum of 20% of the annual subsidy payable.

·                    SSA wise technology neutral Representative Rates.

·                    Review of representative Rate in the third year taking into account, inter-alia the increase in revenue on account of provision of STD facility.  The revised rates to be applicable from the 4^th year onwards.  The review has already been undertaken.

·                    Disbursement of subsidy to be made quarterly in arrears.

·                    Claims to be submitted within 30 days from the close of the quarter.

·                    For amount received in excess of 10% of the subsidy due for the financial year, the entire amount paid in excess shall be recovered along with an interest from the date of disbursement at the Prime Lending Rate of SBI.

·                    Deduction of pro-rata subsidy on account of telephones remaining faulty for more than seven days in a quarter.  In cases where the VPTs remains faulty for 45 days or more than in a quarter, no subsidy for the entire quarter shall be allowed.

·                    With effect from the quarter ending 30-09-2004 VPTs that remain disconnected on account of non payment and VPTs that register no incremental meter reading during the entire quarter shall not qualify for any support for that quarter.

·                    Since BSNL only has emerged as the successful bidder, no performance Bank Guarantee has been imposed.  For BSNL the requirement for submission of PBG has been waived as long as it is a 100% Government owned Company.

3. PROVISION OF RURAL COMMUNITY PHONES  

·                    The Agreement is  valid for a total period of  8  (Eight)  years  from  the Effective date.  The subsidy support shall be extended up to a maximum period of 5 (Five) years from the date the VPT/RCP is installed and made functional.

·                    The universal Service Provider shall receive the Subsidy consisting of a  front loaded subsidy component and equated annual subsidy upto a maximum  period  of  five years, from the date the VPT/RCP  is provided and  made functional .

·                    The front loaded subsidy shall be given at the end of the quarter in which VPT is installed and made functional.  The equated annual subsidy shall be disbursed in four quarterly installments during each financial year, with each quarter ending on 30^th of June, 30^th of September and 31^st of March.

·                    Deduction of pro-rata subsidy on account of telephones remaining faulty for mare than seven days in a quarter.  In cases where the VPT/RCP  remains faulty for 45 days or more in a quarter, no subsidy for the entire  quarter shall be allowed.

·                    VPTs/RCPs  that register no incremental   meter reading/calls or  remain  disconnected due to non-payment during an entire quarter shall not qualify for subsidy support for that quarter.

·                    Roll out obligation: At least 20% of  the VPTs/RCPs shall be provided  by the end of 2^nd year. The balance of the VPTs/RCPs shall be provided by the end of third year from the effective date of Agreement.

·                    For the shortfall in providing the required number of VPTs/RCPs by the end of second third year respectively, liquidated Damages at the rate of 5% of front loaded subsidy payable for those VPTs/RCPs for each calendar month of delay or part thereof, subject to a maximum of 10% of the front loaded subsidy thus payable for those VPTs/RCPs shall be recovered, unless the delay has been condoned.

·                    The universal Service Provider shall submit a Performance Bank Guarantee(PBG) valid for one year equivalent to front loaded subsidy disbursable under the Agreement for 2% of the VPTs/RCPs in all the SSAs of the Service Area for which the Agreement is entered into.

·                     From the start of the second year the amount of PBG shall have to be equivalent to the front loaded subsidy disbursable under the Agreement for 60% of the VPTs/RCPs in all the SSAs of the Service Area for which the Agreement is entered into. The PBG shall be reduced to its original amount from the start of the fourth year or on completion of the roll out obligation by installing all VPTs/RCPs in all the SSAs of the Service Area for which Agreement is entered into, whichever is later.  For BSNL the requirement for submission of PBG has been waived as long as it is a d100% Government owned Company.  The Performance Bank Guarantees are being presently maintained at USF HQs.

4. SALIENT FEATURES OF AGREEMENT FOR PROVISION OF RURAL HOUSEHOLD DELS (INSTALLED PRIOR TO 1.4.2002)

·                    Support has been provided for Rural household Direct Exchange Lines (DELS) installed prior to 1.4.2002 to BSNL on the terms and conditions specified.  No other Private Basic Service Operators has furnished any claim

·                    The period of Subsidy support from Universal Service obligation Fund is 1.4.2002 to 31.01.2004.

·                    Only the rural household DELs on Fixed line telephony Service including wireless in loca