Question

Q4. Consider the following statements about Universal Service Obligation Fund:

1. USO is to provide universal access to telecom services, i.e., focus on providing telecom services to rural and remote areas at affordable and reasonable prices.

2. All credits to the fund require parliamentary approval and it has a statutory support under Indian Telegraph (amendment) act 2003.

Select the correct answer using the codes given:

• A. a) 1 only
• B. b) 2 only
• C. c) Both 1 and 2
• D. d) None of the above

Answer 1

The correct option is C

c) Both 1 and 2

• The idea is to provide universal access to telecom services, i.e., focus on providing telecom services to rural and remote areas at affordable and reasonable prices.
• A fund exclusively for meeting the above objectives, created under department of telecommunications, Ministry of communication and information technology.
• It is a non-lapsable fund, unspent amount under target financial year does not lapse, accrues for next years’ spending.
• All credits to the fund require parliamentary approval and it has a statutory support under Indian Telegraph (amendment) act 2003