15 January 2012

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No Food for Poor Rs.25,000 Crore USO fund to subsidize mobile telephone bills of Poor Indians

No Food for Poor Rs.25,000 Crore USO fund to subsidize mobile telephone bills of Poor Indians

ET reported that The Planning Commission has reportedly suggested that the amount of nearly Rs 25,000 crore lying in the Universal Service Obligation fund be utilized for subsidizing rural mobile telephone bills.

The Planning Commission has proposed that the government, sent the proposal to the PMO to pay 20% of all mobile bills that are less than Rs 300 a month for customers in rural India by dipping into funds set aside for providing subsidized telephony.

It has also suggested that all rural customers who take up a mobile connection be given a one-time subsidy of Rs 250 from the Universal Service Obligation Fund (USOF).

Now Prime Minister's Office has ordered to telecome dept to study the proposal and telecoms department will submit its response by 17 January.

Currently it is estimated that unutilized USOF fund is more than Rs.25,000 Crore and
it is estimated that this will increase to Rs 36,000 crore by 2013.

The reason for mobile subsidy is that [ planning commission said that ] in village’s telecom penetration is only 30% which is very less.

Indian citizens do not have food to eat, poor Indian citizens do not have shelter in cold
And poor citizens, poor Indian mothers die on road while giving birth to babies.

Now as fund is for telecom then also subsidy for mobile phone use is not right.

The funds should be used in such a manner that the benefits will be forever.

Example - how the fund should be utilized ?

1. fund can be used to lay broad band cables so Internet will reach to poor villagers and using internet they will get the knowledge about agriculture and many other things.

2. Telecom towers need the energy , the solar plants can be build in the villages which will not only help to give energy to telecom towers, they will help farmers and it will help the whole village many ways, as many villages in India today also get light only for few hours that few hours are also not guaranteed.

In short the fund should be used towards the good benefits , the benefit which will be forever.

If mobile phone or landline phone bill is subsidized what will happen ?

The mobile companies or telephone companies will become rich.

Once the subsidy is over the villagers will stop using mobile or landline which ever they get.

Third is corruption , villagers will buy the connections and they will resell that connection to the people who are staying in cities.

Who will control this corruption?

What if telecom or mobile companies show the fake sales and fake customers and do the corruption of Rs. 250 + Rs. 300

Just consider that telecom company shows 100,000 fake telecom connections and earn that is get the subsidy of just Rs. 250 for each connection.

So what is the amount of corruption ?

100,000 Multiply 250 = Rs.25000000 Corruption Amount for showing only 1 Lakh fake customers.

And there will be no one to check this and control this.

Just hope the PMO will reject this proposal and see that the lying USO fund of Rs.25,000 Crore gets used in proper manner.

More Reading –

Know about Universal Service Obligation fund USO Fund What is USO Fund Reason to create USO Fund

Reality views by sm –

Sunday, January 15, 2012

Tags – USO Fund Planning Commission Rs.25000 Crore

Around the web –

Government may subsidize mobile bills in rural areas



rahul aggarwal January 15, 2012  

sad situation .. this is india. here anything can happen!!!

i hope the PMO is sensible enough to reject this proposal....


rahul aggarwal January 15, 2012  

hey subscribed to your blogs...

Andy January 15, 2012  

As an outsider getting a glimpse of these things through blogs like these, I find this shocking. Seems to me they have their priorities all wrong.
Interesting write-up.
Thanks for sharing & visiting. Appreciate the comment.

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Kirtivasan January 15, 2012  

Subsidy should not be given for telecom in rural.
Industry should take business initiative and volunteer for fibre optic lines and solar energy panels in towers.

sm,  January 16, 2012  


Christy Gerald January 16, 2012  

This usually happens in India. Nice write-up .Easy reading it..Thanks for ur comments at my space.

Team G Square January 17, 2012  

Anything can happen in our country .

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