The Universal Service Obligation Fund (USOF) in India was formed to improve telecommunications infrastructure and connectivity in rural areas by requiring telecom operators to contribute 5% of licenses fees to the fund. The USOF aims to bridge the gap between urban and rural telephone subscriptions by providing improved access in rural areas. It has contributed to India's telecom revolution by funding infrastructure development, though rural tele-density remains lower at 48% compared to urban areas.

1. The Role of Universal Service
Obligation Fund (USOF) in India's
Telecom Revolution

2. The Universal Service Obligation Fund (USOF) was formed on the
premise that Telecom operators have an obligation to contribute
towards improving telecommunications infrastructure…

3. …to enable connectivity to people living in far-flung rural
regions. The idea is to bridge the gap between urban and
rural telephone subscriptions.

4. Telcos in India have been paying a 5% levy on various
licenses towards the USOF since 2002 – 03…
…with the objective of providing improved
telephone access in rural areas.

5. The evolution of the telecom industry can
be categorized into three phases:
A. Pre-liberalization Era

6. B. Post-liberalization Era

7. C. Post 2000 – Beginning of the 21st Century

8. The Universal Service Obligation Fund (USOF) was designed to sustain
and accelerate telecommunications access to people in rural and
remote areas at affordable prices.

9. USOF – Fund Allocation Year-on-Year

10. Factors that contributed to the rise in Tele-
Density in India include:
A. Reduction in call rates
B. Reduced data charges
(enforced by market forces)
C.
Availability of handsets at
lower prices
D. Economic Liberalisation

11. The rise in Tele-Density in India over the years..
Source: TRAI

12. Despite these factors, rural tele-Density remains rather low at 48%

13. About ICFAI Flexible Learning Programs
ICFAI Flexible Learning Programs are designed primarily for Working Professionals to pursue their
management program while they continue to work. These programs provide them with the Skills, Knowledge
and Strategic Perspectives required for them to succeed at their workplace and promote their career
progression.
The programs range from Modular >> Certificate >> PG Diploma >> MBA in the functional areas of Finance,
Marketing, Operations, HR etc. and covers the industry sectors like IT/ITES, Health Care, Pharma, Telecom,
Banking, Financial Services and Insurance, etc.
Features - Flexible Learning Programs:
✓ Convenient and Flexible Mode of Learning
✓ Innovative learning methodology backed by Contemporary Curriculum
✓ Quality Courseware along with new-age learning aids as part of the Hub & Spoke Learning Model
✓ Online Counseling Classes
✓ Web support for the students
✓ Easy fee payment patterns including EMIs
✓ Examination thru Computer Based Testing (CBT) pattern – conducted 4 times in a year, giving flexibility to
the working-class in choosing the schedules

14. Thank You
Phone: 1-800-200-9977
Email: FLP@ICFAIUNIVERSITY.IN
Website: www.flexible.icfaiuniversity.in