Universal Service Fund in Turmoil Due to Security, Theft Issues

The Universal Service Fund (USF) has awarded Rs. 141.66 billion in subsidy so far to telecom operators for the implementation of around 150 projects, envisaging expanding telecom services to un-served and under-served areas of the country.

Sources told ProPakistani that the USF however is facing several challenges including security and equipment theft issues, which are hampering progress and delaying the timely execution of various projects in the pipeline.

The fund was created in 2007 to stretch cellular, broadband internet, fiber optics, and other telecommunication services to un-served or underserved areas. All telecom companies have been contributing 1.5 percent of their revenues to the fund. Telecom operators contribute around Rs. 7-8 billion to the fund per annum.

Telecommunication coverage was around 44 percent before USF was launched in 2006-07.

According to documents, of the total Rs. 141.66 billion subsidies, Ufone took a major chunk of Rs. 40.94 billion (28.6 percent), Pakistan Telecommunication Company Limited (PTCL) Rs. 36.648 billion (25.9 percent), Telenor Rs. 30.041 billion (21.2 percent), Zong Rs. 5.637 billion (3.9 percent), Wateen Rs. 4.847 (3.4 percent), World Call Rs. 1.273 billion (0.9 percent), Jazz Rs. 13.784 billion (9.7 percent), and Nayatel Rs. 6.007 billion (4.2 percent).

An official said that the “Broadband for Sustainable Development” program, under the USF, is designed to provide telecom services to the un-served Mauzas across the country.

After the issuance of 3G/4G licenses by the federal government, this program has been redesigned to include broadband equivalent data (internet) services as a compulsory component.

For new projects, powering the telecommunication sites through solar energy was also made a part of each project. According to documents, 1,699 base transceiver stations (BTS) have been installed and 12,825 Mauzas have been covered.

USF aims to promote the development of telecommunication services in un-served and under-served rural areas of Pakistan to make available and affordable, voice telephony and basic data services, throughout the length and breadth of the country. This requires also the establishment of a stable and reliable Optic Fiber Network in all corners of the country.

This project aims to extend the Optic Fiber connectivity to the un-served Tehsil HQs in Pakistan, for meeting the growing requirements of Voice, Data, and Video in these areas.