Wednesday, September 16, 2009

4B USD USOF.

With the Empowered Group of Ministers (EGoM) setting a higher base price for 3G spectrum and the Telecommunications minister confident of getting the Auction process through within the next 90 days, there is certainly going to be a lot of excitement in the coming days.

The Universal Service Obligation Fund (USOF) held by the Government of India, which is an accumulation of a small percentage of the revenue generated by the Mobile operators, has grown into over $4 Billion. With over 70% of India being largely rural, it is appropriate that the Government starts effectively deploying the USOF to improve m-literacy among the youth in rural India. Government, by providing subsidies should encourage the Telecom Operators to work with local administration and Distance education providers to achieve 100% m-literacy across the villages/Towns. The Telcos will have access to “m-literate” rural population, which certainly would help in improving ARPU.

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