Context:

Recently, The Department of Telecommunication (DoT) notified ‘Telecommunications (Administration of Digital Bharat Nidhi) Rules, 2024. 

More on the News

• The ‘Telecommunications (Administration of Digital Bharat Nidhi) Rules, 2024’ was published under the Telecommunications Act, 2023 by the Department of Telecommunication, Ministry of Communication. 
• The Universal Service Obligation Fund (USOF) created under the Indian Telegraph Act, 1885 has been rechristened (to give a new name) as Digital Bharat Nidhi under Section 24(1) of the Telecommunications Act, 2024.
• These rules aim to streamline the administration and implementation of the Digital Bharat Nidhi (DBN) initiative. 

Significance of the Rules

• The rules provide for the powers and functions of administrator, who will be responsible for overseeing the implementation and administration of the Digital Bharat Nidhi. 
• The rules also provide for criteria for undertaking schemes and projects under Digital Bharat Nidhi and selection process for implementers (called DBN implementers). 
• The rules stipulate that funds from the Digital Bharat Nidhi will be allocated to projects aimed at improving telecommunication services in underserved and remote areas and for underserved groups of the society, such as women, persons with disabilities and economically and socially weaker sections. 

The Telecommunications Act, 2023

• It seeks to repeal existing legislative framework like the Indian Telegraph Act,1885 and the Indian Wireless Telegraph Act, 1933 owing to huge technical advancements in the telecom sector and technologies.
• Guided by the principles of Samavesh (Inclusion), Suraksha (Security), Vriddhi (Growth), and Tvarit (Responsiveness), the Act aims to achieve the vision of Viksit Bharat (Developed India).

Digital Bharat Nidhi

It would replace the erstwhile Universal Service Obligation Fund (USOF). 

• It is a pool of funds collected through a 5% Universal Service Levy on the Adjusted Gross Revenue (AGR) of all telecom operators. 
• The schemes and projects funded under the Digital Bharat Nidhi need to meet one or more of the criteria stipulated in the rules. Some of the criteria include – 
• Provision of mobile and broadband services.
• Supply of essential telecommunication equipment.
• Enhancement of telecom security
• Improving access and affordability of telecom services
• Introduction of next-generation telecommunication technologies in underserved rural, remote and urban areas. 

Working of Digital Bharat Nidhi:

• As per the Telecom Act, contributions made by telecom companies towards the Digital Bharat Nidhi will first be credited to the Consolidated Fund of India (CFI).
• Funds collected under the DBN will be used to:
• Promote access to telecommunication services in underserved areas.
• Support research and development of telecom services and technologies.
• Fund pilot projects, consultancy, and advisory support to enhance connectivity.
• Introduce new telecommunication services, technologies, and products.