Digital Bharat Nidhi, Boost to Rural Telecom Connectivity

Context

• The Department of Telecommunications (DoT) has introduced draft rules to establish the Digital Bharat Nidhi (DBN).
• This new initiative is intended to replace the Universal Service Obligation Fund (USOF).

What is Digital Bharat Nidhi?

Origins: DBN is a transformation of the older USOF, which was funded through a 5% levy on telecom operators’ Adjusted Gross Revenue (AGR) to expand telecom networks in rural areas.

Details about Digital Bharat Nidhi

• Aim: The DBN aims to support universal access to telecommunication services in underserved areas, along with funding research and development (R&D) in telecom technologies, supporting pilot projects, and introducing innovative telecom services and products.
• Administration: An administrator will be appointed to manage the DBN, selecting implementers through competitive bidding or application invitations.
• Funding: Contributions from telecom companies to the DBN are initially credited to the Consolidated Fund of India and subsequently transferred into the Nidhi periodically.
  • Funding Modalities: The Nidhi will employ various funding strategies such as full funding, partial funding, co-funding, and providing risk capital depending on the specific project or scheme.
• Beneficiaries: The focus will be on providing telecom services to underserved groups including women, persons with disabilities, and economically weaker sections of society.
• Entities that receive funding from DBN are required to share their telecom networks and services openly and on a non-discriminatory basis, adhering to guidelines set forth by the administrator.

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