Print Print edition: 2012-02-22

Universal Service Fund: A success story

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Universal Service Fund was established by the Government of Pakistan (Ministry of Information Technology) for the development of telecommunication services in un-served and under-served areas in 2006. This fund consists of contributions (1.5% of adjusted revenues) by the Telecom Operators with no Government funding involved.
USF, which consists of contributions by Telecom operators, is implemented through USF Company, which has an independent Board of Directors, equally balanced between Government and Private sector. Currently, USF is running programs for providing basic telephony and data services, optic fiber connectivity to the Tehsils, broadband internet to 2nd tier cities and towns and bringing broadband to the villages through telecenters.
So far, a lot has been accomplished: In Rural Telecom Program, almost 3,600 previously-unserved villages have been provided telecom services.
In Broadband Program, 256 previously unserved towns now have almost 359,000 USF-funded broadband connections. Subsidy winning service-providers are obliged to provide free Broadband Internet to ALL higher-secondary schools, libraries and colleges in their areas. So far 994 such institutions have been covered.
In Optic Fiber Connectivity Program, more than 4,100 Kms of Optic Fiber Cables have been laid through subsidy contracts connecting 102 unserved Tehsils with 6,523 kms of cables.
To take Broadband Internet to the villages, USF has launched a Program to establish Universal Tele-Centers (UTCs). These projects aim at introducing and promoting e-services in the country especially where availability of PCs and computer literacy are the main issues.
And finally, the initiation of USF pilot Project to set-up telemedicine networks around large cities like, Rawalpindi, Karachi and Multan. Through this project, Jinnah Post graduate medical center, Karachi, Nishtar Medical College Multan and Holy Family hospital Rawalpindi will be connected with 12 remote sites to set up three telemedicine networks.
Challenge before USF is to achieve the targets through an efficient and transparent competitive bidding process. Therefore, all disbursements of the fund are done through competitive bidding, encouraging full competition among telecom licensees. Request for proposals for projects and procuring official items/consultancy services are made in complete conformity with PPRA Rules. These advertisements are released in newspapers and USF and PPRA Websites. USF is audited by professional external auditors and AGP.
With the support of Ministry of IT and PTA, it is hoped that USF will excel more and continue to make its contribution towards the progress of our country.