Rural telecom connectivity set to get a stronger line

NEW DELHI: The government plans to connect every panchayat to a broadband network in the next three years and increase phone usage in rural India
four-fold in five years, so that two out of every five villagers own phones, President Pratibha Patil told Parliament on Thursday. The measures will be part the Bharat Nirman programme for improving infrastructure in villages.

As of April end, rural India, which houses more than two-thirds of India's population, had less than one-third of the country's 430 million telephone connections.

The plans to improve rural connectivity will most certainly result in increased allocation from the Universal Service Obligation Fund (USOF) for setting up telecom infrastructure in interior India.

Since 2002, all telecom operators have been paying 5% of their annual revenues towards this fund and so far, the unutilised amount in this fund has crossed the Rs 25,000 crore. The communications ministry will soon invite bids for setting up over 7,000 telecom towers in rural areas with support from the USOF.

The new government also plans to use a part of this fund for augmentation of the optic fibre cable network across the country to enhance broadband connectivity. Interestingly, India's booming mobile phone industry is attracting more new users in rural areas. Source:economictimes.indiatimes.com

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