The Department of Telecommunications (DoT) has announced the ‘Telecommunications (Administration of Digital Bharat Nidhi) rules, 2024.’ These rules are designed to improve the management and execution of the Digital Bharat Nidhi initiative, which was established under section 24(1) of the Telecommunications Act, 2023, This transition aims to enhance telecom services in underserved areas across India.
The USOF, created to provide affordable telecom services in rural and remote regions through a universal access levy (UAL) of 5 per cent on telecom companies adjusted gross revenue (AGR), has been criticised for underutilisation since its inception in 2003.
The new DBN framework, which came into effect on June 26, 2024, will direct funds first to the Consolidated Fund of India before being allocated to the DBN for specific purposes like expanding telecom services in underserved areas, supporting pilot projects and consultancy assistance, funding research and development in telecommunications and introducing new telecom services, technologies, and products.
An appointed DBN administrator will oversee the selection of “DBN implementers” through bidding or applications. These implementers are required to provide services in an open and non-discriminatory manner and must adhere to the guidelines set by the administrator. The rules also allow for a digital portal to facilitate service provision and monitoring of projects.
Overall, the Digital Bharat Nidhi aims to improve connectivity and accessibility in regions often neglected by private telecom operators, thereby bridging the digital divide in India.
