December 27, 2010

Cellcos seek funds halt to USF, R&D Fund.....(Issue # 50)

STAFF REPORT ISLAMABAD: The development projects involving Rs 15 billion in the field of information technology came to a halt about nine months back which resulted into non-utilization of the Universal Service Fund (USF).

According to details, in this emerging situation the telecommunication companies have threatened to stop making mandatory contributions in the form of access promotion charges to the USF which has now swelled to over Rs 35 billion.

At least four leading companies are on record as having asked the government to stop collecting USF contributions for subsidizing telecom access in less developed areas.

“We propose that the further collection of USF and R&D contribution should be capped till the current funds are efficiently consumed,” said a joint letter sent to the Ministry of ITT by the four cell companies.

The sources said that the USF has not awarded any contract for the launch of rural telecom services, broadband access, laying of optic fibre cables and multi-purpose community tele-centers in more than 6,000 villages since March last.

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