How do the draft rules for Digital Bharat Nidhi (DBN) reflect a shift from the Universal Service Obligation Fund (USOF), and what implications do they have for the administration of telecom services in India?(12 MARKS)
The draft rules released by the Department of Telecommunication mark a significant transition from the Universal Service Obligation Fund (USOF) to the Digital Bharat Nidhi (DBN), as mandated by the Telecommunications Act, 2023.
Purpose and Establishment:
USOF: Originally established to provide telecom services in remote and rural areas through a universal access levy.
DBN: Renamed and redefined under sections 24 to 26 of the Telecommunications Act to enhance telecom access in underserved areas, support pilot projects, research, development, and introduce new technologies.
Funding and Administration:
Payments for DBN will be first credited to the Consolidated Fund of India and then allocated to DBN upon parliamentary approval.
Funds are exclusively designated for expanding telecom services and technological advancements in rural, remote, and urban underserved areas.
Proposed Rule Changes:
Aim to replace outdated Indian Telegraph Rules (1951) governing USOF operations.
New rules emphasize flexibility and modernization but do not supersede existing arrangements until their expiration.
Administrative Structure:
DBN will be overseen by a centrally appointed administrator who selects implementers through bidding or application.
Implementers must adhere to open, non-discriminatory service provisions and comply with DBN administrator directives.
Selection and Implementation:
Implementers will be selected through competitive bidding, ensuring fair access to telecom services.
New provisions allow for selection based on research and development initiatives for emerging telecom technologies.
Administrator’s Powers:
Powers include formulating bid processes, disbursing funds, and specifying terms for assets created through DBN funding.
Key Omissions in New Rules:
Removal of definitions for financial terms like “capital recovery”, “net cost”, and “revenue” to streamline operations.
Omission of technical terms like “village public telephone”, “secondary switching area”, and “broadband connectivity” to adapt to evolving technological landscapes.
In conclusion, the draft rules for DBN represent a strategic overhaul aimed at enhancing efficiency, promoting innovation, and ensuring equitable access to telecom services across diverse Indian regions. The emphasis on flexibility, modernization, and innovation reflects a forward-looking approach to addressing India’s digital divide and fostering technological advancement in telecom infrastructure.
