AGR crisis: Govt may dip into USOF to support telecom companies

At a time when the government is looking for solutions to help the telecom industry tide over its worst crisis — payment of AGR dues — it can surely look at tapping the Universal Service Obligation Fund (USOF) where 50% of the funds — Rs 52,000 crore — are lying unutilised, according to sources.

However, to utilise this fund for any purpose other than providing for rural telephony projects, the government would first need to amend the USOF Act, which could be done when Parliament resumes for the Budget session, the sources added.

Since the private operators have provided more than sufficient connectivity in rural areas — much more than the state-owned BSNL (see chart) — surely they can be relieved of the burden of contributing to the USOF and the balance fund can be used for easing their burden of payment of AGR dues.