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With reference to Universal Service Obligation Fund (USOF), consider the following statements:
1. The USOF was created under the Department of Telecommunications in 2002.
2. This fund is a lapsable fund.
3. USOF ensures universal non-discriminatory access to quality ICT services at economically efficient prices to people in rural and remote areas.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    1 and 3 only
  • d)
    1, 2 and 3
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to Universal Service Obligation Fund (USOF), consider t...
  • The Universal Service Obligation Fund (USOF) was created under the Department of Telecommunications in 2002. Hence, statement 1 is correct.
  • USOF ensures that there is universal non-discriminatory access to quality ICT services at economically efficient prices to people in rural and remote areas. Hence, statement 3 is correct.
  • Currently, it is charged at the rate of 5%, while the TSPs demand it to be reduced to 3%.
  • It is a non-lapsable fund, i.e., the unspent amount under a targeted financial year does not lapse and is accrued for next years’ spending. Hence, statement 2 is not correct.
  • All credits to this fund require parliamentary approval and it has statutory support under the Indian Telegraph (Amendment) Act, 2003.
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Community Answer
With reference to Universal Service Obligation Fund (USOF), consider t...
The correct answer is option 'C' - 1 and 3 only.

Explanation:

1. The USOF was created under the Department of Telecommunications in 2002:
- This statement is correct. The Universal Service Obligation Fund (USOF) was established by the Government of India under the Department of Telecommunications (DoT) in 2002. It was created to provide universal access to telecommunication services in rural and remote areas of the country.

2. This fund is a lapsable fund:
- This statement is incorrect. The USOF is a non-lapsable fund, meaning that the unused balance of the fund in a particular financial year does not lapse and is carried forward to the following year. This ensures that the fund continues to accumulate and can be utilized for the development of telecom infrastructure in rural and remote areas.

3. USOF ensures universal non-discriminatory access to quality ICT services at economically efficient prices to people in rural and remote areas:
- This statement is correct. The primary objective of the USOF is to provide universal access to telecommunication services, including internet connectivity, to people in rural and remote areas of India. The fund aims to bridge the digital divide by ensuring that all citizens have equal and affordable access to quality Information and Communication Technology (ICT) services. It promotes non-discriminatory access, meaning that the services provided should be available to all without any discrimination based on factors like location or socio-economic status. The fund also focuses on ensuring that the services are provided at economically efficient prices, making them affordable for the rural population.

In conclusion, statement 1 is correct as the USOF was created under the Department of Telecommunications in 2002. Statement 2 is incorrect as the fund is a non-lapsable fund. Statement 3 is correct as the USOF aims to provide universal non-discriminatory access to quality ICT services at economically efficient prices to people in rural and remote areas. Therefore, the correct answer is option 'C' - 1 and 3 only.
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With reference to Universal Service Obligation Fund (USOF), consider the following statements:1. The USOF was created under the Department of Telecommunications in 2002.2. This fund is a lapsable fund.3. USOF ensures universal non-discriminatory access to quality ICT services at economically efficient prices to people in rural and remote areas.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?
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