The Department of Telecommunications (DoT) has notified Digital Bharat Nidhi Rules 2024 under the Telecommunications Act, 2023.
- These rules are meant to operationalize the Digital Bharat Nidhi (DBN), which replaces the Universal Service Obligation Fund (USOF).
Key Highlights of the Notified Rules:
Criteria:
- Focus on provisioning telecom services in underserved rural, remote, and urban areas.
- Encourage the introduction of next-generation telecom technologies.
- Promote startups within the telecommunications sector.
- Emphasize the development of sustainable and green technologies.
Network Sharing:
- DBN implementers are required to share and make telecom networks and services available on an open and non-discriminatory basis.
Fund Allocation Process:
- Bidding Process: Designed to promote and support the delivery of established telecommunication services in underserved areas.
- Selection by Application: Supports research and development (R&D) of new or emerging telecom technologies, products, or services through co-funding, Viability Gap Funding (VGF), and other methods.
About Digital Bharat Nidhi (DBN):
- DBN was established through the Telecommunications Act, 2023, replacing the Universal Service Obligation Fund (USOF).
- The USOF was originally created under the Indian Telegraph Act, 1885, as a non-lapsable pool of funds generated by a 5% Universal Access Levy on the Adjusted Gross Revenue (AGR) of telecom licensees.
- Purpose: DBN aims to fund telecom schemes in underserved remote and rural areas to ensure affordable access to telecommunication services.
Functioning:
- Contributions from telecom companies are first credited to the Consolidated Fund of India (CFI) before being allocated to the DBN.
- DBN funds are used to promote universal service by supporting projects that improve connectivity, promote R&D, and introduce new telecom technologies in underserved regions.
Administration:
- The government will appoint an administrator to oversee DBN operations.
- This administrator will select DBN implementers through a bidding process or by inviting applications from eligible entities.
- The administrator will also determine the funding modalities, which may include full funding, partial funding, co-funding, market risk mitigation, and risk capital allocation.
Targeted Support:
- The DBN will fund schemes to provide underserved groups, including women, persons with disabilities, and economically and socially weaker sections, with access to telecommunication services.
Ref: Source
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Frequently Asked Question:
What is the Digital Bharat Nidhi (DBN)?
The Digital Bharat Nidhi (DBN) is a fund established to enhance telecom services in underserved areas, replacing the Universal Service Obligation Fund (USOF).
What was the Universal Service Obligation Fund (USOF)?
The USOF was a fund under the Indian Telegraph Act, 1885, to support telecom services in rural and remote areas.
What is Viability Gap Funding (VGF)?
Viability Gap Funding is financial support provided to projects that are economically viable but fall short on financial returns.
What are the benefits of network sharing in telecom?
Network sharing reduces costs, improves efficiency, and expands service coverage, particularly in underserved areas.