USO bid for setting rural telecom towers

The Department of Telecom has received bids from 22 stand-alone infrastructure providers and all telecom operators for the setting up 8,000 telecom towers in rural India at an estimated cost of over Rs 3,000 crore. The government will provide the capital to set up these towers from the Universal Service Obligation Fund (USOF) through a bidding process. All Telecom companies pay 5% of their adjusted gross revenues towards the USOF, which is used for funding telecom infrastructure in rural India. Last year, the government had allocated Rs 1,500 crore towards the USOF in the budget. As per the Economic Survey released on Tuesday, off the Rs 10,787 crore collected towards USO fund till March 2006, only Rs 4,232 crore has been disbursed so far.