The Department of Telecommunications (DoT) has requested the government for more funds from the Universal Service Obligation (USO) fund.

DoT is seeking more money from USO fund to help Bharat Sanchar Nigam Limited (BSNL) in expanding its rural network. Earlier, the Telecom Regulatory Authority of India (TRAI) in its recommendations to DoT had said that BSNL should be given access to higher finances as it has the task of maintaining a large network and providing services to remote and far-flung areas.

The fixed line rural network laid down by BSNL prior to April 2002 was primarily set-up with USO funding via access deficit charges. TRAI in its recommendations has put the subsidies payable to BSNL for rural wireline connections for 2011-12 at Rs 15.93 billion and Rs 12.65 billion for 2012-13.