The government continues its efforts to support BSNL?s fixed-line operations in rural areas

The government is continuing its efforts to boost Bharat Sanchar Nigam Limited?s (BSNL) fixed-line business.

As per news reports, the Universal Services Obligation (USO) Fund will provide a Rs 15 billion subsidy to the operator to sustain its fixed-line operations in rural India.

The USO Fund has reportedly signed a memorandum of understanding (MoU) with the operator for this purpose. The MoU mandates subsidy payout over one year.

However, the operator may receive Rs 12.5 billion as a second subsidy amount, if the National Institute of Communications Finance (NICF) recommends the same to the Telecom Commission.

The government has been pulling out all stops to help the operator gain ground for some time now. Prior to this, the Telecom Regulatory Authority of India had recommended that the operator be given a subsidy worth Rs 27.50 billion over two years to support its fixed line business in rural India.