Internet service providers (ISPs) such as Sify, Tulip and World Phone may soon have to subsidise the broadband connection in rural areas. The government is considering a proposal to bring the value-added service providers under the universal service obligation (USO) norms. Presently, telecom service providers are required to pay 5% of their adjusted gross revenue (AGR) as universal service levy (USL) to meet the USO norms. ISPs and other value-added service providers are, however, exempted from this levy.
“The government is contemplating several measures to increase broadband penetration in the rural parts of the country and levying USL on ISPs can be one of the tools for taking the programme ahead,” a source in the department of telecommunication (DoT) said.
Money raised through the initiative would be utilised to subsidise Bharat Sanchar Nigam Ltd’s (BSNL) rural broadband connections. DoT already provides subsidy to BSNL for spreading telecom network in the rural areas.
Progress on the front of broadband penetration has been quite low. Total connections as on April 30, 2008, stood at 4.01 million as against the government’s target of nine-million connections by 2007 and 20 million connections by 2010.
Worried over missing the target—both on the front of broadband and internet—the DoT is in the process of devising new strategy for tackling the situation. The subsidy scheme is a part of that strategy. The scheme would be implemented in phased manner across the country and would also cover remote areas including the north-eastern states. This would cover common service centres (CSCs) being set up by the department of information technology (DIT) schools, primary health centres and gram panchayats in a phased manner.
The government is also planning to subsidise its broadband initiative by using existing USO funds. The DoT has about Rs 15,000 crore of unutilised money under the USOF scheme and is finding ways to spend this in a holistic way.
Showing posts with label DIT. Show all posts
Showing posts with label DIT. Show all posts
Wednesday, June 25, 2008
Saturday, June 21, 2008
Govt plans to subsidise internet for rural India
Worried over missing the broadband addition target, the government is now planning to give sub sidy for new broadband connection in the rural parts of the country. The subsidy would be up to 50% of the total cost of setting the system by service providers. Also, running cost of internet in rural ar eas would be about half of those in the cities. These steps are being taken in a move to strengthen the e governance network as the government has miser ably failed on this front.
“We are in the process of finalising the subsidy mechanism for rural broadband connections in consultation with the finance ministry,” an official in the department of telecommunications (DoT said.
The scheme would be implemented in phased manner across the country and would also cover remote ares including the north-eastern states, the official said adding the final scheme would be worked out taking in consideration views of all stakeholders. The new scheme would cover common service centres (CSCs) being set up by the department of information technology (DIT) schools, primary health centres and gram panchay ats in a phased manner.
E-governance is one of the key areas of concern for the UPA government. The government has not been able to achieve the desired level of efficiency in the project due to many reasons, including low penetration of internet in rural areas. In fact, the DIT could not utilise the money allocated in the last year’s budget and returned Rs 102 crore due to under utilisation. According to data available with the finance ministry DIT could use only Rs 617 crore against the allocated Rs 719 crore on e-governance projects.
The national e-governance plan (NeGP) covers 27 mission mode projects and 8 support component to be implemented at the central, state and local government levels. The project includes setting up of one lakh CSCs in six lakh villages across the country. On the front of broadband connections, total connections as on 30 April 2008 stood at 4.01 million. This is against the government’s target of nine million connections by 2007 and 20 million connections by 2010.
Source : EconomicTimes
“We are in the process of finalising the subsidy mechanism for rural broadband connections in consultation with the finance ministry,” an official in the department of telecommunications (DoT said.
The scheme would be implemented in phased manner across the country and would also cover remote ares including the north-eastern states, the official said adding the final scheme would be worked out taking in consideration views of all stakeholders. The new scheme would cover common service centres (CSCs) being set up by the department of information technology (DIT) schools, primary health centres and gram panchay ats in a phased manner.
E-governance is one of the key areas of concern for the UPA government. The government has not been able to achieve the desired level of efficiency in the project due to many reasons, including low penetration of internet in rural areas. In fact, the DIT could not utilise the money allocated in the last year’s budget and returned Rs 102 crore due to under utilisation. According to data available with the finance ministry DIT could use only Rs 617 crore against the allocated Rs 719 crore on e-governance projects.
The national e-governance plan (NeGP) covers 27 mission mode projects and 8 support component to be implemented at the central, state and local government levels. The project includes setting up of one lakh CSCs in six lakh villages across the country. On the front of broadband connections, total connections as on 30 April 2008 stood at 4.01 million. This is against the government’s target of nine million connections by 2007 and 20 million connections by 2010.
Source : EconomicTimes
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