Table of Contents
Introduction
The Government of India has launched a historic scheme named Digital Bharat Nidhi (DBN) that is now rechristened in place of the Universal Service Obligation Fund (USOF). The DBN is aimed at improving the telecommunication infrastructure in the rural and remote areas of the country to overcome the past negative aspects of criticism on inadequate utilization of USOF funds. This writing aims at discussing the implication of the Digital Bharat Nidhi, its working environment and some of the forecasted consequences on the telecommunication sector in India.
Understanding the Transition: From Investment USOF to Debt DBN
The USOF is an abbreviation of the Universal Service Obligation Fund established in India.
The USOF was set up under the government’s Universal Service Obligation to steadily facilitate provision of minimum telecommunication services for inhabitants of the remote and rural areas of India. Spurred by a 5 percent Universal Service Levy on the Adjusted Gross Revenue (AGR) of the telecom operators the USOF was formulated to provide universal service for areas with low tele-density. However, the fund was criticized for not making the best of the social objectives formulated for the fund. It explained that the government received ₹41,740 crore under the USOF during the period from 2017 to 2022, however spent ₹30,213 crore only, which makes the rate of utilisation only around 72%.
Every entrepreneur and start up will first have to register for the Digital Bharat Nidhi.
In an attempt to modify the steps towards the improvement of telecom access, the DoT came out with the draft norms on July 4th, 2024 to implement the DBN. This follows the Centre informing the Telecom Act parts that had provided extra points for changing the USOF into the DBN with a bigger mandate and aim.
The following is the mode of functioning of the digital Bharat Nidhi:
Funding Mechanism
Thus, in terms of the Telecom Act, where a telecom firm contributes towards the Digital Bharat Nidhi, the sum so credited shall accrue to the CFI. The government will then deposit the collected funds into the Digital Bharat Nidhi periodically so as to enable the DBN finance its projects periodically. This type of structure keeps a steady stream of money earmarked towards enhancing the telecoms infrastructure and service in the uncovered regions.
Objectives of the DBN
The DBN is intended to expand broadband telecommunication coverage to as many people in the concerned countries and contributing regions as possible ensuring access even in the rural, remote, and even the urban areas that still have poor coverage. The fund will be utilised for:The fund will be utilised for:
- Creating awareness of telecommunication services in unserved regions
- Financing of telecom services, technologies, and products through research and development
- Endorsing pilot ventures, consultancy help, and advising for the aim to upgrade connection.
- Introducing next-generation telecommunication technologies
- Promoting of innovation, research, development and the commercialization of technologies locally developed.
- Official permission and frameworks to be formulated in order to meet the national necessity and internationalisation standards.
- Coming up with telecommunication start-ups and funding the production of telecommunication equipment
Implementation and Oversight
- The draft rules introduced goals on the organisation and governance of the DBN, according to which the Centre will appoint an ‘administrator’ for the organisation of the DBN.
- This administrator shall be able to hire “DBN implementers” through a bidding system or invitation of options from qualified candidates.
- It shall be made clear that, in general, the funding modalities will be selected with reference to particular projects cases and may include, among the others, the full funding, partial funding, co-funding, market risk mitigation and risk capital.
Ensuring Accountability and Transparency
One of the most pronounced features of the DBN framework is that accountability and transparency are the inherent items of the given framework. The aforesaid draft rules require any DBN implementer who receives funding for creation, operation, upkeep or expansion of any telecom network to share and make available, such networks and services in an open and a non-discriminatory manner. This provision is meant to encourage ailing and even help level the field on what is sure to be a great leap up in connectivity.
Dealing with the Criticisms of USOF
Underutilisation of Funds
Another major issue that was rampant with the USOF was the poor usage of the fund. For instance, while the government earned ₹7,962 crore in 2019-20, the utilisation remained mere ₹2,926 crore. This trend of partial utilisation was the least auspicious to the enhancement of the fund on connectivity in the unserved areas.
Broader Scope and Focus
The DBN on the other hand allows for the coverage to go beyond the provision of telecommunication services and it also seeks to encourage research and development, innovation and the commercialisation of new technologies. This flexibility also enables the fund to be more responsive to the changing dynamics within the telecom sector and address a vast array of projects with the ultimate goal of enhancing accessibility to networks.
Benefits of the Digital Bharat Nidhi Broadband for the Bush:
- Issues for improving connectivity in rural and remote regions In the case of the DBN, the focus is made on the provision of telecommunication services in rural and other undeveloped regions to address the problems of the digital divide and make sure all clients have access to necessary telecom services.
- To this end, increased connection in these areas is believed to boost economic activity, increase access to education and health care facilities and enhance social equity in the relevant areas.
Promotion of Indigenous Technologies
- This is because the DBN is directed towards research and development of new indigenous technologies and commercialisation of those aimed at boosting innovation within the telecom sector.
- Through incubating these start-ups and promoting local solutions the DBN hopes to transform India into a world powerhouse of telecommunication technology.
Boosting Economic Development
- Overall enhancement of telecom connectivity can act as a cause for bringing change in the overall GK index of the particular region.
- Thus, the DBN can positively influence the accessibility of markets and consequently, improving business opportunities and investment attraction in the rural and remote areas.
- This in the long-run may foster employment opportunities and employment generation, better means of living, and sound economic development.
Encouraging Private Sector Participation
- Due to the DBN’s format which is transparent and accountable in its manner, private telecom operators may find new ways to contribute.
- Clear rules of the game along with RB government can help DBN attract players and bring impetus to the connection of underserved regions.
Conclusion
- The Digital Bharat Nidhi needs to be seen as an elaboration of the steps already unfolding in India for betterment of telecom connectivity across the spectrum.
- To overcome the issues with the USOF and propose the more extensive and comprehensive vision of the DBN that should address the problem and connect all people to the necessary telecommunication services.
- Since the DBN focuses on research, innovation, and the commercialization of indigenous technologies, it will soon revolutionize telecom sectors in the inland India to propel socioeconomic development in the unexplored areas.
FAQS
Q1: What is the Digital Bharat Nidhi (DBN)?
Ans: The Digital Bharat Nidhi (DBN) is a fund established by the Government of India to replace the Universal Service Obligation Fund (USOF). It aims to enhance telecom connectivity in rural, remote, and underserved urban areas by supporting the expansion of telecommunication networks and services.
Q2: How does the Digital Bharat Nidhi differ from the USOF?
Ans: The Digital Bharat Nidhi has a broader scope than the USOF. While the USOF primarily focused on providing basic telecommunication services, the Digital Bharat Nidhi also aims to fund research and development, support pilot projects, promote innovation, and encourage the commercialisation of indigenous technologies in the telecom sector.
