Universal Service Fund:: USF

Universal Service Fund was established by the Government of Pakistan (Ministry of Information Technology) to spread the benefits of the telecom revolution to all corners of Pakistan. Universal Service Fund promotes the development of telecommunication services in un-served and under-served areas throughout the length and breadth of the country.

The fund consists of contributions (1.5% of adjusted revenues) by the Telecom Operators with no Government funding involved. To utilize this fund for achievement of the targets, it was decided to follow a Corporate Model. This led to establishment of Universal Service Fund (USF) Company under Section 42 of the Companies Ordinance 1984. Universal Service Fund (USF) has an independent Board of Directors equally balanced between four members from the government and four from the private sector (industry and consumers).

The structure of USF Company is first of its kind in Pakistan and a Corporate Model is being followed for achieving the targets set for the company in USF policy. USF Company has an independent and diversified Board of Directors which is equally balanced between four members from the government and four from the private sector. CEO is the 9^th director of the Board.

Objectives: The main objectives of Universal Service Fund (USF) are:

1- To bring the focus of telecom operators towards rural population and increase the level of telecom penetration significantly in the rural areas through effective and fair utilization of the fund.

2- To improve the Broadband penetration in the country.

3- To bring significant advances towards enhancement of e-services, both in rural as well as urban areas of the country.

Universal Service Fund (USF) finances spread of telecom services to previously un-served or under-served areas and makes it possible for licensed telecom operators to provide services to those areas, on normal commercial (read: competitive) terms. Telecom services include basic telephony, broadband internet, infrastructure for these services (like Optic Fibre) and Community Tele-centers (for those who cannot afford the necessary instruments/devices). Challenge before USF is to achieve the targets through an efficient and transparent competitive bidding process. Therefore, all disbursements of the fund are done through competitive bidding, encouraging full competition among telecom licensees.

The company was established in end-2006, it has been running and completed some of the Broadband for Sustainable Development Projects in un-served areas (“Lots”), for which contracts have been signed with major telecom service providers in the country  for providing telecom services. These projects have been bearing fruits and telecom services have started in several lots.

The second program being followed is Broadband for Un-served Urban Areas. The Broadband Program has been launched aiming at improving broadband penetration in those 2nd/3rd tier urban areas which are un-served from the Broadband perspective. Special emphasis is being paid to educational institutions, whereby the subsidy winners are required to set-up Computer Labs with Broadband in all the high-schools and colleges in their respective areas. The broadband Program is also giving boost to provision of other e-services like e-health, e-government, e-commerce etc.

The third Program aims to extend the reach of Optic Fibre Connectivity to un-served Tehsils. Extending Fibre cables to Tehsils will help the telecom service providers in providing all kinds of telecom services to those areas. It is like building information motor-ways to all Tehsils.

Given below is the composition of the board:

Universal Service Fund (USF) has also launched special projects to establishTelecentres and Telemedicine Networks all over the country. These projects aim at introducing and promoting e-services in the country especially where availability of PCs and computer literacy are the main issues. Projects like ICTs for Girls, have been succefully running for making telecom facilities accessible for all.

Challenge before USF is to achieve the targets through an efficient and transparent competitive bidding process. Therefore, all disbursements of the fund are done through competitive bidding, encouraging full competition among telecom licensees. Request for proposals for projects and procuring official items/consultancy services are made in complete conformity with PPRA Rules. These advertisements are released in newspapers and USF and PPRA Websites. USF is audited twice a year by professional external auditors.

Website: https://www.usf.org.pk/