DoT permits three service providers for rural telephony

Chennai: The Department of Telecommunications has called for suggestions on its draft tender document for providing subsidy support under the universal service obligation (US) fund to set up and manage infrastructure sites to provide mobile phone service in rural areas.

The scheme is divided into two parts — A and B. Part A relates to setting up of infrastructure sites comprising of land, tower, electrical connection, power back up, boundary wall and security cabin to be supported by USO fund. The licencees are to be called infrastructure providers. Part B relates to provisioning of mobile services for which the base station equipment, associated antennas and backhaul to be supported by USO fund and the service providers will be called Universal Service Providers.

As per the draft, bids will be invited for districts or group of districts where fixed wireless or mobile coverage does not esist. The department expects three service providers as the infrastructure providers shall set up 40 metre height towers.

The selected infrastructure provider will have to commission at least 40 per cent of the infrastructure sites in the service area within six months period and the remaining 60 per cent within 12 months period of the signing of the agreement. The fund support to the infrastructure provider will be in the form of a percentage of the capital recovery.

During the first five years of operation, the infrastructure providers shall not charge any rental from the service providers for using the infrastructure.

The service providers shall provide the mobile services using the shareable infrastructure. The equipment so installed shall be owned by them and shall retain the revenue generated from the operation of the mobile services. The financial support will be in the form of a percentage of the capital recovery for the installation of the equipment shall be payable as subsidy for a period of five years on the basis of the outcome of the bidding process.