Universal Service Fund Programmes For Rural Communities

Above 63% tele-density and still a "Fund" is needed to expand the networks? It may seem strange to some, but the answer is Yes. And the reason is simple. Although tremendous strides have been made in telecom in Pakistan but there are vast areas that still remain "unserved".
Why? Because Telecom sector is completely privatised and in this age of cut-throat competition, the Telcos cannot afford to provide services in areas where investments are high and returns very little (small and relatively poor population). But on the other hand, one cannot forget that the citizens who live in such places have the same right to modern services, like telecom, as others. Even if they didn't, in today's world, without a modern telecom infrastructure, it is impossible to develop. On top of all, problem is that these areas are the ones that are also very difficult to reach. The concept of Universal Service Fund is not new and is, in fact, quite simple - all licensed telecom service providers contribute to the Fund and then that Fund is used to subsidise necessary infrastructure in such areas where private sector telecom service providers do not find a compelling enough business case.
Universal Service Fund Co happens to be the name of the company created for the purpose of disbursing that Fund in an open and transparent manner through competitive bidding and then overseeing that the projects are run properly and services are provided in all the unserved targeted areas. Access to services is offered by the telecom operators, both to all customers requesting service in those areas and through shared access points (like PCOs), at the same national tariffs as for everyone else in the country. All this is being achieved through two of the programmes of USF that are described in a little more detail below:
Rural Telecom Programme A study carried out in 2007 revealed that there were an estimated 12,000 un-served 'Mauzas' in the country (Mauza - it may be recalled - is the smallest revenue unit of the Government's administration). So these 12,000 Mauzas were put together in 26 'Lots' in order to provide telecom coverage in a phased manner under the so-called Rural Telecom and e-Services (RTeS) Programme. Following an open competitive bidding process, contracts have been signed with major Telecom Service Providers of the country to provide telecom and data services in 10 of these 26 Lots. Work is in progress in those 10 Lots - in fact some have been completed. These Lots would have been more than 10, if the security situation in these areas was better. Through these ten running projects, the Telecom Operators are working to provide services in 6, 118 Mauzas.
Out of these, almost 3,500 Mauzas have been provided service in the meanwhile. In these 10 projects a total subsidy of Rs 4.2 billion has been committed. Thanks to the competitive nature of the bidding process, bidders are compelled to invest some of their own money too. So for through these ten projects operators are making an additional investment of approximately Rs 4 billion. In other words a total of more than Rs 8 billion is being invested to provide telecom services in remote rural areas. This is how, Universal Service Fund is triggering investments by telecom operators in those rural areas. An un-served populations of 7.2 million people will benefit in these 10 Lots and now they will not have to walk kilometers to make a phone call. These far flung 6,118 Mauzas/Villages are all located in the three smaller provinces and southern Punjab.
Establishment of PCOs and Telecentres A noteworthy aspect of this programme is the establishment of PCOs and Telecenters in those remote Mauzas. This setting up to PCOs is obligatory for the subsidy winners in all Mauzas where the population exceeds 2,000. Similarly setting up Telecenters is obligatory where the Mauza population exceeds 10,000. This enables households, business and individuals to avail services on commercial terms, as well as shared access for those who cannot afford their own handsets. Through the 10 projects awarded so far, more than 800 PCOs and nearly 60 Telecentres will be established, out of which 460 PCOs and 46 Telecentres have already started working.
Innovations USF Pakistan is an innovative programme based on Public-Private-Partnership, with the implementation through an independent Company. It does not stop here, USF Co has been marching ahead using even more innovative schemes and ideas with the help of telecom service providers. Two such innovations concerning energy and backhaul issues are noteworthy.
a. Use of Renewable Energy It was observed that commercial power has not reached most of these rural areas and even if it has, it's uninterrupted availability is a big question mark. As a result, telecom operators had to rely on diesel generators. But the generators are not only costly to run over long periods, getting diesel fuel all the way to those remote sites, with no roads, proves to be another very expensive hassle. On the other side operators would not bid with alternate energy solutions as that would make their bids expensive against others who choose not to do so. Therefore after a detailed consultative process, USF Co decided to make it mandatory for the telecom operators to offer their infrastructure with renewable energy solutions. Consequently all USF funded telecom infrastructure in those areas is now being energized with renewable energy (mainly solar). This is not only contributing in mitigation of national energy crisis, albeit in a miniscule way, it is also promoting "Green" telecom in the country.
b. Backhaul The other big challenge that was faced was how to cost-effectively connect these remote villages with rest of the country (backhaul). There are three methods to provide backhaul links - satellite, microwave and optic fiber cables. Where the first one has a very high operating cost, the second is mostly dedicated (and thus costly again), optic fibers are considered to be the most cost-effective, reliable and long-time durable backehaul solution. Laying optic fiber cables is like building Information Motorways, which benefits not just the voice telecom but also Broadband Internet, Telecenters and all sorts of e-Services later on. This is what Universal Service Fund decided to do - take optic fiber cables to areas where no one had done it.
Optic Fiber programme As in other programme, a country-wide study was conducted, which revealed that there are a total of 400 Tehsils (also called Taluqas) in the country out of which 30% Tehsils do not have optic fiber connectivity. A program was thus designed broken into 11 projects, to take the fiber cables to each and every Tehsil of the country. And after the necessary process of surveys and board approval etc. it was launched in February 2009 starting from Sindh. Up until now five projects have been started, whereby 53 un-served tehsils are being connected with the help of 5,400 kilometers of fiber cables in Sindh and Balochistan, with more projects following closely. A total subsidy of Rs 4.5 billion is being provided for these projects. So far, through these awarded projects, 2,900 kilometers of cable has already been laid to connect 22 Tehsils Headquarters and 05 towns. A by-product of this program is that Pakistan is being connected with Iran and Afghanistan at some points, as these cables either reaching the borders or are getting very near to them.
Challenges Universal Services Fund has consistently come across various challenges. Problems such as security (abductions, even killings), difficulties in access (physical as well as electronic), energy crisis, abnormal increase in costs (inflation, rupee exchange rate), energy crises in the country, etc, have been consistently hampering the progress. However USF Co has been marching ahead despite all these, using innovation schemes and ideas with the help of telecom service providers. However there remain two challenges that USF Co cannot solve - that of security and long-delayed Board Meetings. At times it seems that it is an impossible task to achieve the objectives.
Concluding Apart from rural areas, USF through its broadband programme, is providing Broadband internet to all the 2nd and 3rd tier cities and towns of the country. It has already provided broadband in 238 such small cities and towns. In these towns and cities, around 790 higher secondary schools, colleges and libraries have been provided free Broadband and about 230 Community Broadband Centres are being established for those who cannot afford their own computers. Consistent efforts made jointly with the Telecom Operators, the MoIT and the PTA are slowly succeeding in spreading benefits of ICTs to the deprived people living in rural communities - Mauza by Mauza.