January 31, 2011

USF’s sad story in the telecom sector

By Yasir Ameen 

USERS OF telephony and internet services have been increasing widespread not only in urban cities but in rural areas as well. The teledensity has reached nearly 65 percent– the highest in the South Asian region with different modes of telecommunication including cellular (GSM), Wireless (CDMA) and landline (PSTN). The number of cellular subscribers has crossed more than 100 million in less than one decade. The internet users reached 20 million in the same period.

The services availability has been ensured by different government’s agencies to promote the technology at every nook and corner of the country to make the communication easier among the people and to educate people in latest means.

Universal Service Funds (USF) has played a vital role in bridging the gap between people by means of technology, providing backbone to telecom sector to attain a tremendous status in the country. It paved the way towards the development of telephony and internet services in the rural and far-flung areas and towards the attractive business opportunities and investment ventures for telecom operators.

Established in 2006-end, USF assumed as a vanguard of the sector to promote the development of telecommunication services including broadband and e-services in un-served and under-served areas throughout the length and breadth of the country.

USF under highly professional people has mechanized the basic infrastructure of telecom and internet technology along with awareness among masses of services. The USF Company is audited twice a year by professional external auditors. So far six audits of the Company have been conducted and it never got any audit objection.

Since its inception, the organization has handed over 38 development projects to different telecom operators including optic fiber, broadband, telecenter. These projects cost Rs 15.5 billion with some of them have been completed and others have been pursuing the targets.

However as the democratic government assumed its rule in last year, the organization has been in turmoil since the government intervened in the Ministry of Information Technology and Telecommunication (MoITT).

It is an irony ministry was performing well through technocrats and bureaucrats in the last two and half year before any minister. Prime Minister was supposed to be the caretaker of the ministry whereas autonomous departments, like, Pakistan Telecommunication Authority, National ICT R&D Funds and USF under the ministry quite well.

Senator Sardar Latif Khan Khosa, the ex-attorney general, was given a charge of MoITT in February 2010. He clashed with bureaucracy on the prevailing policies, which according to him, were caused corruption of billion rupees.

According to the sources, USF and ICT R&D were dissolved and its all development schemes were dissolved by the minister-incharge. In his brief period of eight months, Mr Khosa has allegedly violated rules and regulations of the government and tried to appoint his relatives or other close friends on the key posts of the ministry. Mr Khosa had rifts with CEO USF Pervaiz Iftikhar as he wanted to fire him as soon as possible. He had shaken all the USF across the board and sought new team to drive its uplifting projects.

The continuous clash and war of words in the press led to exit of Khosa after six months. But his steps have been paralyzed the USF.

Since March 31 last year, there is no board meeting of USF. Therefore, no approval of budget for development projects even staff members have not been getting their salaries for long time. Development works on 15 different schemes have been stopped as a result of change in policies. Also, 15 other planned projects have not been granted approval by USF from the head of the ministry.

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 under international obligations that envisage providing telecom and IT facilities to all citizens as a basic right.

“We propose that the further collection of USF and R&D contribution may kindly be capped till the current funds are efficiently consumed,” said a joint letter sent to MoITT by the four companies — Mobilink, Telenor, Warid and China Mobile. On the contrary, their demands were not met neither it the operators were assured about positive development.

Sardar Aseef Ali was deputed to serve the MOITT last month. But the secretary of the ministry got retirement and thus it is again all together a new story to resolve. Industry people said the IT and Telecom are not the priority of the government though it is quintessential for economic and social development in present age.

The corrupt ministers and their inefficient policies could also sink semi-government institute like USF if it is neglected.


http://www.technologytimes.pk/mag/2011/jan11/issue05/usf_sad_story_in_the_telecom.php

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