Rural Telephony

 

Stream I
    1.Operation and Maintenance of Village Public Telephones (VPTs) in the villages identified as per Census 1991 and installation of VPTs in the additional revenue villages as per Census 2001.
    2.Provision of additional Rural Community Phones (RCPs) in villages with population more than 2000, after achieving the target of one VPT in every village.
    3.Provision of additional Rural Community Phones (RCPs) in villages with population more than 2000, after achieving the target of one VPT in every village.
    4.Replacement of Multi Access Radio Relay (MARR) based VPTs installed before 1.4.2002.
    5.Up-gradation of a Public Telephone to Public Telecom and Information Centers (PTICs) in villages with population more than 2000, for providing data applications including FAX, e-mail, internet besides voice-telephony.
    6.Installation of High Speed PTICs (HPTICs) for providing additional facilities including tele-education and tele-medicine at Block Headquarters and in villages with a population
Note: Unless otherwise specified by the Central Government, the Secondary Switching Area (SDCA) shall be taken as a unit for the purpose of arriving at the Net Cost for activities specified in items (a) to (e) of stream I
Stream II: Provision of household telephones in rural and remote areas

For household DELs installed prior to 1st day of April, 2002, the difference in rental actually charged from rural subscribers and rent prescribed by TRAI of India for such subscribers shall be reimbursed until such time the Access Deficit Charges prescribed by TRAI from time to time take into account such difference.

For household DELs installed after 1st day of April, 2002, Capital Recovery, Operational Expenses and Revenue shall be taken into account to determine the Net Cost.

Note: Unless otherwise specified by the Central Government, the Short Distance Charging Area shall be taken as a unit for the purpose of arriving at the Net Cost for activities specified in item (b) of stream II
For more information on USO Fund please visit the site www.dotindia.com
Rural Direct Exchange Lines in AP as on: 31-MARCH-2009

Total RDELs : 321587
Number of RDELs Subsidised Under USO: 321587

 

List of Agreements

 

S.No.
Operator
Agreement Number With Date
Activity
1
BSNL
No.30-101/2002-USF Dated 28-03-2003
OPEX
2
BSNL
No.30-107/2002-USF Dated 25-09-2003
MARR-I (w.e.f. 1-7-2003)
3
BSNL
No.30-107/2002/USF Dated 19-03-2004
MARR-II
4
BSNL
No 30-133/2004-USF Dated 30-09-2004
RCPs
5
BSNL
No.30-130/2004-USF Dated 10-11-2004
VPTs In Uncovered villages
6
BSNL
No.30-131/2008-USF Dated 27-02-2009
VPTs In Uncovered villages-(NEW)
7
BSNL
No.30-145/2004-USF Dated 03-05-2005
RHDELs-I (1-4-2002 to 31-03-2005)
8
BSNL
No-30-140/2004-USF Dated 15-03-2005
RHDELs-II (w.e.f 01-04-2005)
9
BSNL
No-30-140/2004-USF Dated 15-03-2005
RHDELs-III (Extension of RHDEL-II)
10
TATA
No-30-101/2002-USF Dated 31-03-2003
OPEX
11
RCL
No-30-133/2004-USF Dated 30-09-2004
RCPs
12
RCL
No.30-145/2004-USF Dated 26-08-2005
RHDELs-I
13
RCL
No.30-140/2004-USF Dated 17-03-2005
RHDELs-II
14
RCL
No.30-140/2004-USF Dated 17-03-2005
RHDELs-III (Extension of RHDEL-II)

 

 

A. Operation And Maintenance Of Village Public Telephones

  1. The Agreement is valid for a period of seven years.
    SSA-wise technology specific Representative Rate for which subsidy is to be given forms part of the agreement.   The Administrator or TRAI may carry out performance tests either directly by themselves or through authorized agency and also evaluate the Quality of service (QoS) parameters for VPTs at any time during the tenure of the agreement. The USPs shall provide ingress and other support including documents, instruments, equipment etc for carry out such performance tests and evaluation of QoS parameters.   For wireless technologies, WLL rate shall apply wherever no Representative Rate has emerged, unless specifically allowed.   The VPTs on any wireless technology shall be provided using Fixed wireless Terminals (FWTs).   

  2. Disbursement of subsidy to be made quarterly.
    Claims to be submitted within 30 days from the close of the quarter.

     

  3. Quarter wise payment of subsidy is made after making the adjustments, if any, for the payments made in the previous quarter. Final adjustment, if any, in respect of excess or shortage in the subsidy disbursed shall be made in the following year based on the quarterly statements duly certified by the Auditors of the USPs.   For amounts received in excess of 10% of the subsidy due for a financial year, the entire amount paid in excess shall be recovered along with an interest from the date of disbursement at the Prime Lending Rate of SBI.  Deduction of pro-rata subsidy on account of telephones remaining faulty for more than seven days in a quarter.   In cases where the VPT remains faulty for 45 days or more in a quarter, no subsidy for the entire quarter shall be allowed.  With effect from the quarter ending 30.09.2004, VPTs that remain disconnect -ed on account of non-payment and VPTs that register no incremental meter reading during the entire quarter shall not qualify for any support for that quarter vide letter No. 30-101/2002-USF dated 14-09-2004. MARR VPTs on their replacement will not be eligible for subsidy under this Agreement.   The Universal Service Provider may change the location of VPTs to provide better access to the public within the same village. No payments for relocating the VPTs will be made from USOF on the expenditure incurred on relocation.   Performance Bank Guarantee (PBG) equivalent to one quarters subsidy payable for all the VPTs in the Service Area for which the Agreement has been entered into. For BSNL the requirement for submission for PBG has been waived as long as it is a 100% Govt. owned company. The PBGs are presently being kept at USF HQs.

 

 

B. Replacement Of MARR Village Public Telephone

(a) Subsidy for a VPTs shall be for nine years from the date of its replacement or up to the date of termination of Agreement, whichever is earlier. 
(b) The USPs will charge the Tarrrifs for the SERVICE from the customers/users as per the TRAI Tarrif orders/directions issued in this regard from time to time. The USPs shall also fulfil requirements regarding publication of tariffs, notifications and provisions of information as per the provision of information as per the provision of TRAI Act, 1997 as replaced or recommended from time to time. 
(c) The USPs shall ensure the QoS as prescribed by the TRAI from time to time. The USP shall adhere to such QoS standards and provide timely information as required therein. 
(d) Roll-out obligation prescribing 50% of the MARR VPTs in the Service Area to be replaced within one year from the effective date of the Agreement and the balance within two years from the effective date of the Agreement. 
(e) Provision of Liquidated Damages in case of non-fulfillment of the roll out obligation. The liquidated damages shall be at 10% of the annual subsidy payable for those VPTs for each calendar month of delay or part thereof, subject to a maximum of 20% of the annual subsidy payable. 
(f) SSA wise technology neutral Representative Rates.
(g) Disbursement of subsidy to be made quarterly in arrears. 
(h) Claims to be submitted within 30 days from the close of the quarter. 
(i) For amount received in excess of 10% of the subsidy due for the financial year, the entire amount paid in excess shall be recovered along with an interest from the date of disbursement at the Prime Lending Rate of SBI. 
(j) Deduction of pro-rata subsidy on account of telephones remaining faulty for more than seven days in a quarter. In cases where the VPTs remains faulty for 45 days or more than in a quarter, no subsidy for the entire quarter shall be allowed. 
(k) With effect from the quarter ending 30-09-2004 VPTs that remain disconnected on account of non payment and VPTs that register no incremental meter reading during the entire quarter shall not qualify for any support for that quarter. 
(l) Since BSNL only has emerged as the successful bidder, no performance Bank Guarantee has been imposed. For BSNL the requirement for submission of PBG has been waived as long as it is a 100% Government owned Company. 
 

C. Provision Of Rural Community Phones

(a) The Agreement is valid for a total period of 8 (Eight) years from the Effective date. The subsidy support shall be extended up to a maximum period of 5 (Five) years from the date the RCP is installed and made functional.
(b) The USPs will charge the Tarrrifs for the SERVICE from the customers/users as per the TRAI Tarrif orders/directions/regulations issued in this regard from time to time. All rates must be prominently displayed in the local language. The USP shall also display Toll free Public Utility Telephone numbers such as Fire, Police and Ambulance etc. A complaint book shall be available at each RCPs site and shal be produce for inspection by the Administrator and/or persons/ organization authorized in this regard. The USPs shall also fulfil requirements regarding publication of tariffs, notifications and provision of information as per the provision of information as per the provision of TRAI Act, 1997 as replaced or recommended from time to time.
(c) The universal Service Provider shall receive the Subsidy consisting of a front loaded subsidy component and equated annual subsidy upto a maximum period of five years, from the date the RCP is provided and made functional .
(d) The front loaded subsidy shall be given at the end of the quarter in which is installed and made functional. The equated annual subsidy shall be disbursed in four quarterly installments during each financial year, with each quarter ending on 30th of June, 30th of September and 31st of March.
(e) Deduction of pro-rata subsidy on account of telephones remaining faulty for mare than seven days in a quarter. In cases where the RCP remains faulty for 45 days or more in a quarter, no subsidy for the entire quarter shall be allowed.
(f) RCPs that register no incremental meter reading/calls or remain disconnected due to non-payment during an entire quarter shall not  qualify for subsidy support for that quarter.
(g) Roll out obligation: At least 20% of the RCPs shall be provided by the USPs within one year from the effective date of Agreement and minimum 60% of the RCPs shall be provided by the end of 2nd year. The balance of the RCPs shall be provided by the end of third year from the effective date of Agreement.
(h) For the shortfall in providing the required number of VPTs/RCPs by the end of second third year respectively, liquidated Damages at the rate of 5% of front loaded subsidy payable for those VPTs/RCPs for each calendar month of delay or part thereof, subject to a maximum of 10% of the front loaded subsidy thus payable for those VPTs/RCPs shall be recovered, unless the delay has been condoned.
(i) The USPs may change the location of the RCPs to provide better access to the public within the geographical boundaries of the same village during the validity of the contract under intimation to the Administrator. No subsidy supports towards relocation of RCPs is paid to USPs.
(j) For BSNL the requirement for submission of PBG has been waived as long as it is a d100% Government owned Company. The Performance Bank Guarantees are being presently maintained at USF HQs.
 

D. Provision Of Rural Household Dels (Installed During 1.4.2002 to 31.3.2005)

(a) The agreement will remain valid for eight years from the effective date of agreement unless revoked earlier for any reason what so ever.
(b) The USPs shall operate and maintain all Rural Household DELs installed by it between 01-04-2002 and 31-03-2005 in the specified SDCAs in the Specified Area covered under the Agreement.
(c) The USPs shall be bound by the terms and conditions of the Agreement as well as by such orders/ directions/ Regulations of TRAI as per the provisions of TRAI Act 1997 as mended from time to time.
(d) The USPs shall not charge Tariffs higher than the TRAI Tariff orders/ regulations/directions issued with regard to rural household DELs from time to time from customers/users for service.
(e) The USPs will keep a record of RDELs indicating faults and rectification reports and other related details in respect of service rendered.
(f) The USPs shall received subsidy towards rural household DELs installed between 01-04-2002 and 31-03-2005. The equated annual subsidy where payable shall be given upto a maximum period of five years from the date of installation of these RDELs. The one time front loaded subsidy shall be payable only for net addition of rural household DELs in a local exchange area. Net addition shall means the number of RDELs added after making adjustment for RDELs closed permanently on account of surrenders, non payments, or shift out of the Local Exchange Area.
(g) The RDELs that remain faulty for more than seven days in a quarter shall not be reckoned for the purpose of disbursement of full equated quarterly subsidy from USOF and subsidy payable shall be reduced proportionately for the total number of days the RDELS remain faulty during the quarter. Further if a RDEL remain faulty for 45 days or more no equated subsidy for the entire quarter for that RDEL shall be disbursed.

E. Provision Of Rural Household Dels (Installed During 1.4.2005 TO 31.3.2007)

(a) The Rural Household Direct Exchange Lines (RDELS) shall be provided in the specified short distance charging areas (SDCA).
(b) The support to be given will comprise a front loaded subsidy and an equated annual subsidy where payable based on Capital Recovery annualized over a period of seven years and annual Operation and Maintenance expenditure for provision of the customer premises terminal equipment inclusive of the local loop minus the annual Revenue. Only the rural household DELs installed after the effective date of the Agreement, on fixed wire lines (Landline) and wireless in local loop technology (Fixed WLL) will qualify for subsidy support from USO Fund. Public telephones (VPTs/PCOs/RCPs) WLL (Mobile) services will not be eligible for subsidy support from USO Fund under this Agreement.
(c) The Agreement shall be valid for a period of 5 years from 1.4.2005.
(d) The USPs shall indemnify the Administrator in respect of any damages, claims , loss or action against administrator for acts of commission or omission on the part of the USPs, its agents or servants.
(e) The USPs will charge the Tarrrifs for the SERVICE from the customers/users as per the TRAI Tarrif orders/directions/regulations issued in this regard from time to time. The USPs shall also fulfil requirements regarding publication of tariffs, notifications and provision of information as per the provisions of TRAI A ct 1997 as amended time to time.
(f) The Universal Service Provider shall receive the Subsidy towards Rural Household DELs installed up to 31.03.2007. The equated annual subsidy where payable shall be paid from the date the rural household DEL is installed and made functional up to the validity period of the Agreement.
(g) The front loaded subsidy shall be payable only for net addition of rural household DELs in a local exchange area. Net addition shall mean the number of RDELs added after making adjustment for RDELs closed permanently on account of surrenders, non-payment or shifts out of the Local Exchange Area.
(h) The Universal Service Provider shall be eligible to submit the claim for front loaded subsidy at the end of the quarter in which the Rural Household DELs are installed and made functional. The equated annual subsidy where payable shall be disbursed in four quarterly installments during each financial year, with each quarter ending on 30th of June, 30th of September, 31st of December and 31st of March. The subsidy is paid after making adjustments, if any, pertaining to the previous quarter. Final adjustment, if any in respect of excess or shortage in the subsidy disbursed shall be made in the following year based on Quarterly Statements duly certified by the Auditors of the USPs.
(i) In case the USPs is found to have claimed and received in excess of 10 percent of the subsidy due to them for a financial year, the entire amount in excess shall be recovered along with interest from the date of disbursement at the Prime Lending Rate of the State Bank of India prevalent on the day the disbursement was made.
(j) Deduction of pro-rata equated annual subsidy on account of telephones remaining faulty for more than seven days in a quarter. In case where the DEL remains faulty for 45 days or more in a quarter, no subsidy for the entire quarter shall be allowed.
(k) For BSNL the requirement for submission of Performance Bank Guarantee has been waived as long as it is a 100% Government owned Company.
(l) ROLL OUT: At least 100 rural household DELs should be provided within six months from the effective date of the Agreement in each of the SSA within the Service Area for which the Agreement is signed based on a waiting list to be maintained. After six months from the effective date of the Agreement, all wait-listed subscribers shall be provided with rural DELs within a period of three months of registration.
(m) For the RDEls not provided as per the Rollout required to be achieved, without prior written concurrence of the Administrator, the delayed period shall entail recovery of Liquidated Damages (L.D.).
(n) For Rural DELs installed after 1.4.2007 similar Terms and conditions applicable to RDELs installed during 01-04-2005 to 31-03-2007 would apply except that.
(1)The Roll Out Obligation is not part of the Agreement,
(2)The period of support will be for five years from the date of installation of the RDEL and
(3)The quarterly claims for period that has already elapsed can be submitted together.

F. Quality of Service Parameters (VPTs/RDELs/RCPs)

(a) The Quality of Service Parameters for Basic Telecommunication Services as prescribed by TRAI shall prevail.
(b) The Universal Service Provider shall ensure the Quality of Service (QoS) as prescribed by the TRAI from time to time. The Universal Service Provider shall adhere to such QoS standards and provide timely information as required therein.
(c) The ADMINISTRATOR or TRAI may carry out performance tests either directly by themselves or through authorized agency and also evaluate the QoS parameters for the RDELs/RCPs/VPTs at any time during the validity period of the AGREEMENT. The Universal Service Provider shall provide ingress and other support including documents, instruments, equipments, equipment etc. for carrying out such performance tests and evaluation of Quality of Service Parameters.
(d) The Universal Service Provider will keep a record of RDELs/RCPs/VPTs indicating faults and rectification reports and other related details in respect of the service rendered, which will be produced before the ADMINISTRATOR or TRAI as and when and in whatever from desired.
(e) The Universal Service Provider shall be responsive to the complaints lodged by its customers. They shall rectify the deficiencies and maintain the history sheets for each installation, statistics and analysis on the overall maintenance status.
(f) Proper arrangement should be made by the USPs for reporting / booking faulty RDEL/RCPs/VPTs and its regular testing. Print out of line tests of RDELs/RCPs/VPTs and record of metered call units (MCUs) should be preserved by the Universal Service Provider for a period of at least six months or till the final settlement of subsidy claimed, whichever is later.

G. Agreement for Provision Of Wire Line Broadband Connectivity In Rural and Remote Areas

(a) The Agreement shall remain valid for 8 years from the effective date.
(b) Wire line broadband connections shall be provided from approximately      rural wire line exchanges in AP Circle.
(c) From each exchange a maximum of 31 individual/Govt. institutional connections and on kiosk shall be subsidized by USOF.
(d) For individual/Govt. institutional connections, in additions to subsidy for connectivity which shall be paid as FLS and EQA, subsidy for CPE and computing device shall also be payable.
(e) The USP shall not recover any charges towards installation, registration, security deposit for the broadband connections upto 31 connections per exchange.
(f) The USP shall receive FLS on installation of individual/govt. institutional connection and shall also receive EQA subsidy up to a maximum period of two years from the date of installation or up to the validity of the Agreement whichever is earlier. FLS shall be payable for net additions for the respective exchange.
(g) For kiosks, the USP shall receive only EQA subsidy for 3 years from the date of installation or till the validity of the Agreement, whichever is earlier.
(h) Subsidy shall be disbursed quarterly in arrears generally with in 60 days of the receipt of the valid claim for the connection/kiosk.
(i) The connections/kiosk that are closed permanently shall be eligible to receive EQA subsidy from the date of installation till the date on which they are closed

 

Check Points for claim preparation/checking

 

Please refer to the Section on Salient features of various Agreements for specific points to check.

 

Common Points For All Agreements:
Please make sure that:

 

Claim must be submitted within prescribed time frame. Subsidy disbursement is Quarterly in arrears and claims must be submitted within 30 days of the close of the Quarter.  Claim is in prescribed proforma and is complete in every respect.  Claim to be accompanied by affidavit in prescribed form.   Initials of Authorized representative on each page of claim.  Consolidation Sheet and last page of claim statement must carry signature of the authorized representative with the company seal.  In addition to hard copy claims must also be submitted in CD with the signature of the authorized representative and seal of the company on the CD.   Claim must be accompanied by all the relevant documents as specified in Agreement.  Stamped pre-receipted bill to be given along with claim. Representative rates used must be as per concerned Agreement.  Name of SSA/SDCA should match with the list given in the agreement Suffix 123 etc for more than one village in the same SSA with the same name.   For pro rata calculations take the of number of days in the quarters (90/91/92).  Make sure that the consolidation sheet tallies with detailed claim statement.  Add up each incidence of fault during the quarter.   Include both from and to dates in calculating the number of days of fault.   Commencing Quarter ending 30.9.03 VPTs remaining DNP or registering no incremental meter reading during entire quarter, to be treated as faulty and subsidy not to be claimed in their case for that quarter.  Opening Balance of connections of present Quarter must tally with closing balance shown in consolidation sheet of previous Quarter.

 

Special Points To Note For:

 

A.Claims For Provision Of Rural Community Phones


Please submit a copy of the first bill in support of claim for RCPs.   Claim should be only for list of Villages for provision of RCPs as approved by DOT

 

B.Claims For Provision Of Rural Household Dels Between 1.4.02 And 31.3.05


Please submit Bill Summary as specified in Agreement in support of Claims. The number of permanently closed DELs reflected in the claim statement should be from out of the DELs installed on or after 1.4.02. Opening Balance of DELs should be DELs existing as on 1.4.02 In Attachment 1/2 to Annexure I(summary and claims statement for front loaded subsidy), the highest number of Rural DELs in any previous Quarter(Column No 10) is to be considered from 1.4.02 onwards.   All Rural DELs installed on or after 1.4.02

 

C. Claims For Provision Of Rural Household Dels Between 1.4.05 And 31.3.07


Please submit Bill Summary as specified in Agreement in support of Claims. The number of permanently closed DELs reflected in the claim statement should be from out of the DELs installed on or after from 1.4.05. Opening Balance of DELs should be DELs existing as on 1.4.05 In Attachment 1/2 to Annexure I(summary and claims statement for front loaded subsidy), the highest number of Rural DELs in any previous Quarter(Column No 10) is to be considered from 1.4.05 onwards.


D. Claim for provision of Rural Household DELs after 01-04-2007.


Besides above checks at B & C above following additional checks may also be applied.  Checking of Customer Application Form vis--vis DELs claimed. Checking of Call Details Record in respect of DELs claimed to ensure that the DELs were operational.   Net Addition of RDELs with respect to closing balance as on 01-04-07 in to be taken into account for release of front loaded subsidy.

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