Government Allocates 5% of USOF for Telecom Technology Development

Pune, 22nd July 2024: In the Economic Survey 2023-24 presented in Parliament on Monday, the government announced its decision to allocate 5% of the Universal Service Obligation Fund (USOF) for the development and expansion of telecommunication technology. This move aims to address the significant capital required for research and commercialization in this sector. The USOF, now renamed the Digital India Fund, currently holds approximately ₹80,000 crore. The survey emphasizes the need for substantial investment to foster innovation and growth in telecommunications.

The Economic Survey highlights the critical role of research and development (R&D) in telecommunication technology, necessitating significant funding. “The government has decided that 5% of the annual collection from the Universal Service Obligation Fund will be made available for R&D in the telecommunication sector,” the survey states.

The Telecommunications Technology Development Fund, established in 2022, has seen active participation from startups, Micro, Small, and Medium Enterprises (MSMEs), academia, and industry. This collaborative effort aims to drive technological advancements and commercialization in the telecommunications sector.

In 2022, the government dedicated the country to a ‘5G Test Bed,’ providing an end-to-end testing facility. This initiative supports research and development teams in Indian academia and industry to validate their products, prototypes, and algorithms and demonstrate services. Additionally, the survey sheds light on the government’s efforts towards 6G technology development. In March 2023, India launched the 6G Vision Document, outlining the objectives for the 6G Mission and its phased goals. India’s international ranking in mobile broadband speed improved significantly, from 118 in March 2024 to 15.

India’s teledensity, which measures the number of telephones per 100 population, increased from 75.2% in March 2014 to 85.7% in March 2024. The number of wireless telephone connections reached 1.165 billion by the end of March 2024. Furthermore, under BharatNet Phase I and II, a total of 683,175 kilometers of optical fiber cable has been laid to connect 206,709 gram panchayats, enhancing connectivity across rural India.

This strategic allocation of funds and emphasis on R&D aims to bolster India’s position in the global telecommunications landscape, driving innovation and expanding digital infrastructure.