'Waive UFO fee to facilitate rural broadband'

NEW DELHI, INDIA: Cellular Operators Association of India (COAI) has recommended the Department of Telecommunications (DoT) to remove Universal Service Obligation Fund (UFO) fee of 5 per cent of adjusted gross revenue (AGR) on the mobile industry to facilitate rural broadband services.

In an interaction with CIOL, Rajan S Mathews, director general of COAI, said that they heartily support the broadband initiatives of the government.

“There should be a clear articulation and inclusion of the role of mobile broadband in the National Broadband Plan,” he said.

The association seeks support from the government and said that the fund should be used for provisioning of broadband to the rural areas.

“Proceeds from the auctions should also be used to carry out strategy to support national-level broadband activities,” the association said.

Mathews believes that all the benefits and incentives provided to the fiber network service providers should also be provided to mobile broadband service operators. The association has urged the government to remove UFO fee as an incentive to mobile service providers to roll out rural mobile broadband.

In order to make broadband more consumer friendly, COAI said that there is a need to develop applications and relevant content for the local people and government-supported initiatives would be extremely important.

The association has been closely working with the government and has also recommended that it should provide additional spectrum to meet the mobile broadband demand in the country.