The Universal Service Fund (USF) levied at the rate of 1.5 percent of the revenue of telecom operators has been recently transferred back from commercial account to Public Account of Federation, it is learnt. Official sources revealed that earlier funds under the head of USF were being collected at commercial account. However after the transfer of about Rs 60 billion for clearing the circular debt, questions were raised about use of the dedicated USF for a purpose it was not earmarked for and the government was compelled to reinstitute the USF as a dedicated fund.
A new mechanism had been put in place and funds under the head of USF were now being collected as a Public Account of Federation where government performed the duty of a trustee, but could not utilise that fund for any other purpose, official added. USF was created in 2007 to stretch cellular, broadband internet, fibre optics and other telecommunication services to un-served or underserved areas. All five cellular mobile companies have been contributing 1.5 percent of their revenues to the fund, which has utilised over Rs 21 billion to deliver these services to far off locations, to date.
USF has provided telecommunication facility to 310 underserved towns and provided 5500km fiber optics to these areas. In addition to that the USF has established 50 computer labs in Bait-ul-Maal for women empowerment centers.
The government will finance several projects at a cumulative cost of Rs 12 billion from the Universal Service Fund (USF) in the upcoming financial year to ensure coverage of telecommunication and internet facilities in far flung areas of the country. Officials of the Ministry of Information Technology and Telecommunication said that four new projects at an estimated cost of Rs 3 billion would start in 2016-17 under USF to extend IT and telephone services to far-flung areas. Further Rs 9.52 billion will be spent on the ongoing projects in un-served undeserved areas of the four provinces.
Official said new lines at a cost of Rs 2.43 billion would be laid in Balochistan, Kharaan, Washuk, Dera Bugti, Kohistan and Waziristan in the upcoming financial year. An amount of Rs 11.94 million has been earmarked for provision of telephone services in rural areas during 2016-17.
However, sources said it was difficult to reach out to FATA as security forces were not granting permission for survey due to security concerns. The ongoing Broadband projects in southern telecom region are expected to provide coverage to over 56,000 new subscribers in un-served/underserved areas in fiscal year 2016-17. Furthermore, 125 Educational Broadband Centres (EBC''s) and 55 Community Broadband Centres (CBC''s) are to be established under these projects with subsidy of Rs 482.5 million.
Under the Optic Fiber Cable Programme, Rs 63.4 million have been earmarked for on-going projects in Balochistan and Rs 1.9 billion for three new projects in Khyber Pakhtunkhwa, Balochistan, Sindh and Punjab for 2016-17. USF also plans to establish 500 Tele-centers at a total cost of Rs 12 billion by 2018 to serve as one stop for telecommunication services.
USF has signed contracts of Rs 8.76 billion with Telenor and Ufone to provide basic telephony and data services to the population in yet un-served Shangla, Zhob and Sibi lots. Shangla lot (contract worth Rs 1.95 billion) comprises Swat, Shangla and Buner districts, Zhob lot (contract worth Rs 3.61 billion) consists of areas in Musakhel, Zhob and Sherani districts and Sibi lot (contract worth Rs 3.2 billion) comprises Barkhan, Sibi, Killa Saifullah and Loralai districts.