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What is the primary objective of the Universal Service Obligation Fund (USOF)?
  • a)
    Promoting sustainable agricultural practices
  • b)
    Bridging the rural-urban digital divide
  • c)
    Improving healthcare infrastructure in rural areas
  • d)
    Enhancing access to clean water and sanitation
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
What is the primary objective of the Universal Service Obligation Fund...
Telecom service providers have urged the Ministry of Finance to suspend the universal service obligation fund (USOF) levy until the existing corpus is exhausted.
About Universal Service Obligation Fund (USOF):
  • USOF was set up by an Act of Parliament in December 2003 by amending the Indian Telegraph Act, 1885.
  • The objective of the USOF is to provide access to telecom services in a nondiscriminatory manner to people in rural and remote areas at affordable and reasonable prices, thereby bridging the rural-urban digital divide.
  • For commercially non-viable rural and remote areasUSOF provides subsidy support in the form of Net Cost or Viability Gap Funding (VGF) to incentivize telecom service providers for the expansion of telecommunications and broadband services in those areas.
  • Funding Mechanism:
  • The USOF is funded through a levy on the revenue earned by telecom operators.
  • The government imposes a Universal Service Levy (USLon the gross revenue of the telecom companies, which is a percentage of their Adjusted Gross Revenue (AGR).
  • This levy is collected and deposited into the USOF.
  • Administration:
  • USOF is headed by the Administrator, USO Fund who is appointed by the Central Government, for the administration of the fund.
  • It is an attached office of the Department of Telecommunications (DoT), Ministry of Communications.
Hence option b is the correct answer.
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What is the primary objective of the Universal Service Obligation Fund (USOF)?a)Promoting sustainable agricultural practicesb)Bridging the rural-urban digital dividec)Improving healthcare infrastructure in rural areasd)Enhancing access to clean water and sanitationCorrect answer is option 'B'. Can you explain this answer?
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