impact assessment of usof schemes. in trospection of our past...

Impact Assessment of USOF

Schemes.

Introspection of our past achievements

Controller Of Communication Accounts

HP Telecom Circle, Shimla-171009

Brief History of USOF VPT/RCPs & RDELs Schemes

At the time of formation of USOF, initial thought for giving

subsidy to BSNL was to compensate BSNL for Access Deficit

charges. Regime of ADC vanished but subsidy continued in the

form of VPT/RCPs & RDELs on copper wire line. In remote &

inaccessible area, costly technology of MAAR/WILL were used.

Other USPs also Jumped on the bandwagon and gave the

RDELs initially on Fixed Wireless Terminals. On later date, they

succeeded in convincing USOF to use Fixed Wireless Phones

technology (Vide letter dated: 26/02/2007). USOF had given relaxation.

Himachal Pradesh (Statistical Data)

Year 2001 2011

Total Population (as per the Census)

60,77,900 68,56,509

Total Telephones/Mobiles 5,46,816* 81,59,025

Contribution of USOF (VPTs/RCPs/MAARs/RDELs)

Nil 1,13,368

Tele-density Forecasted *(at the time of launching)

3.59/100p 17.78/100p

Tele-density as on today 8.99/100p 118/100p

% wise contribution of USOFIn Tele-density [VPT/RDEL]

Nil 1.38%

Total Subsidy claimed under

three schemesUp till now (RDEL-A, RDEL-B, RDEL-X)

Nil 79,20,72,103

* Figures taken from BSNL website

Honest introspection compel us to acknowledge that the USOF

intervention had negligible impact (hardly 1.38%) on increasing

tele-density. Total subsidy paid up till now is Rs.79.29 Crs. From

this amount approx. eight lakh Mobile Phones to BPL citizens

can be distributed. (Present cost of Mobile Phone Rs.1000 approx including

SIM+Handset). High potential for this bottom-up technology. This

needs for more research work on whether and how mobile

phones impact the lives of the poor.

Tele-density of H.P. at present has crossed 100% (Total

phones 81,59,025/68,56,509 population=118%). There is no

need to the further subsidizing the rural telephony by USOF.

Analysis of Statistical Data

As per the directives of USOF from time to time site

verifications and sampling surveys are carried out by staff

strength of one CAO USOF+0.5 Grp.“C”+ CCA in H.P.

Up till now from USOF, O/o CCAs have received plenty of

literature. Original agreement, three extensions of RDELs

agreements and 82 clarification/relaxation issued by USOF.

Analysis of Statistical Data

Even after repeated requests/directives and personal meetings,

both the USPs are floundering to submit CDRs statements

since last two years. It is next to impossible to get the CDRs

from both the USPs.

In BSNL RDELs claims, VPTs numbers were repeated in

RDELs numbers. They are not also submitting CDRs.

On other side constant pressure is built up on CCAs’ for

settlement of claim on behest of the USPs.

“The tail is wagging the dog”

Verification Status (BSNL)

Critical Analysis of Reliance RDELs

M/s Reliance Com. has shown only 4462 landlines(TRAI latest

monthly report). Against which total claim for 72,229 RDELs is

submitted so far. They are not bothered to the official notices for

explanation for above mentioned discrepancy nor submitting the

CDRs. Technical analysis of CDRs can reveal the true picture. There

are all the possibilities that number shown in TRAI monthly report

might prove correct and remaining RDELs numbers could have

closed down in period of time.

Scrutiny of Reliance CDRs for March, 2010 quarter reveals, against

subsidy claimed for Rs.1,44,23,363/- 7425 RDELs installed. In

particular quarter calls made by subscribers are only 64,178. After

deduction of cost of instruments (Rs.1627*7425=Rs.1,20,80,475/-)

the amount of subsidy paid for actual usages of phone comes to

Rs.23,42,888/-. USOF has paid subsidy of Rs.36.50/- per call.

“India needs regulation but a mountain of

regulation is not necessarily better

because it becomes almost impossible to

enforce”

(Huguette Labelle, Chair, Board of Directors of Transparency

International).

USOF Scheme for Wire lined Broadband connectivity(Agreement entered with BSNL on 20/01/2009)

Activities Target (To

be achieved by

Jan, 2011)

Target

Accomplished

as on

31/12/2011

Verification

visit

prescribed

Verification

visit so far

done by CCA

office

BB (DSLAM)

Connections4,055 2,585 203 178

BB Kiosk 81 103 103 34

Agreement period is for eight years. Bench marking of their

achievements prescribed by USOF is at the interval of two years

& five years.

Reasons for Short fall in installing Broadband DSLAM

� BSNL is legging behind in achieving the target within the first

two years rollout period. Claims also can not be settled due to

the following reasons.

• BSNL has requested to cancel the target for 39 exchange due to

closure of exchanges or non availability of reliable media & for

deletion of 35 exchanges due to less population and nil demand in

remote areas.

• Minimum five connection were to be provided from all the exchanges

(three Govt. Institutes + two individuals users per DSLAM). Instead of

that they are giving connections at their whims & fancies. They are

least bothered for roll out obligation.

Observation of Physical Verification of BB Connection

• USOF subsidy not passed to the customer, instead of that

customer were charged for PC and installation charges by BSNL.

• Service after sale not provided to the customers in rural areas for

computer accessories.

• In general USPs’ are not highlighting the USOF contribution in the

bills raised by them as per the clause 14.10.

• One vendor i.e. M/s Novatium PC had taken the advance from

rural customers for cost of PC but did not install computer even

after a lapse of 2 years. (Newspaper report )

Status of Physical verification of BB Kiosks.

Name of Circle : H.P.

No of eligible

Exchanges.

Total No of BB

kiosks to be

installed by

end of two

years.

Total No of BB

connections as

on 31-12-2011.

Total BB Kiosks

inspected by CCA

office.

811 81 103 34

O/o CCA in physical verifications found plenty of lacunas which

do not permit subsidy for a single Kiosk.

• DG sets are not provided at any of the Kiosk. Subsidy component

for DG set is Rs.1,90,000/-. In difficult terrain of H.P., minimum

coolly charges of Rs.50/- for carrying 10 liters diesel container at

higher altitude. Insistence for DG set requires reconsideration. If the

DG set condition obliterated from the agreement, proportionate

reduction in subsidy can make this scheme viable.

• Instances have come to the notice of duplicity of claims from USOF

subsidy as well as from State Govt. assisted “Lok Mitra Kendras”

e.g. Village “Kadhar-Ghat”, SDCA Shimla.

• After sale services are not provided by the vendors to the Kiosk

owners.

• Web camera has not been provided in many of the sites.

Shortfalls found in Kiosks

• The proper publicity of the BB Kiosk is not in the priority list of

BSNL. Without publicity the use is limited.

• Design and size of the display board at the Kiosk also needs

rethinking. Clarification sought from USOF H.Q. in Sept., 2011

is not received so far.

• Kiosks found installed inside a private premises e.g. “Hotel

Mahesh Regency” premise and use for reception purpose for

booking etc. at Jakhari SDCA Rampur.

• Next slides, photographs are self explanatory.


� This Kiosk is installed at village Nogli on the national highway connecting famous tourist

destination “Kinnour”. The internet facility and a computer are in the middle of the electrical

shop without proper sitting arrangement. Even than local students are using it regularly. Web

camera not provided. Proper display of availability internet facility it self will attract the tourists.

At high altitude village Teklech, BB is working satisfactory with limited

customers. Looking to the size of shop and location can we insist for DG set?

BB connection No 01796-234640 at

Jainagar Solan SSA. The site of BB

connection found closed. It is situated

on second floor with difficult

unprotected staircase.

This BB connection was found working

as a landline at Halwai shop. There

was no computers nor Kiosk. The

BSNL had observed the due formality

of putting of the flexi sign board on

rickety wooden moveable structure at

the Halwai shop at the time of

inspection.

(Kindly see next slide).

BSNL in hurry to accomplish the Kiosk targets had installed the

BB connections in their own offices of SDO and MDF room. The

same is reported in June, 2011 to USOF. It seems that due to

voluminous site verification report inflow from all the CCA offices

it might have gone unnoticed.

Not a single BB Kiosk is found eligible for USOF subsidy. When

the opportunity is given to CCAs’, humble submission is to

rethink the strategy for all such type of schemes.


Pilot Scheme of Rural Public Service Terminals (RPSTs)

initiated by DoT, GOI.

With lot of fanfare, we had launched a RPSTs scheme on Pilot

basis in HP service area vide MOU with BSNL (USP) on 1st Jan

2010. As per MOU, 50 RPSTs were to be provided to Self Help

Group (SHGs) of women in Shimla and Mandi SSAs within one

year. BSNL had subcontracted the work to M/s Indepay.

After constant persuasion for two years by CCA office, BSNL

informed that 40 RPSTs have been provided in Shimla and Mandi

SSAs. It is learnt that M/s Indepay had abandoned the project in-

between. BSNL is not in a position to prefer any USO subsidy

claim. The fate of the project requires special research why

such ambitious project of the USOF met such an infant death.

Pilot Scheme of Rural Public Service Terminals (RPSTs)

initiated by DoT, GOI.

Suggestions for Betterment

“CHARITY BEGINS AT HOME”

�It is matter of regret that being pivotal force for providing telephone, internet,

Broadband facility to the entire India we ourselves are not well equipped. We

are far behind in IT implementation in the DoT. Till today official e-mail

addresses to all the officers working in CCA offices are not provided due to

dependency on NIC. We need our own unified messages solution (e-mail

server). It is really embarrassing for CCAs to use Gmail & Yahoo etc. for

communicating with USPs.

• Top priority at this juncture is to make our own staff and officers computer

and IT savvy. The technology has grown many folds but we are not coming

out of traditional way of thinking.

• Need of the day is “Brainstorming” which can do amazing things to help you

think outside-the-box. Here are some suggestions to get us started.

� As per the directives for the site inspection, for measuring the speed of

internet, we use the Google website for free speedometers. Some times it

connect to Lahore or other alien countries from where possibility of hacking

are manifold. USOF should develop a software with speedometer which not

only measure the speed but also do the recording of numbers, video

conferencing with H.Q. and auto generated visit note. The RDEL visit also

can be recorded directly on Toll free number.

� Insistence for DG set requires rethinking. Cost benefit analysis if carried out,

critical requirement of uninterrupted internet service is justifiable? Esp. in

remote villages where weekly usages is hardly for 3 to 4 times. For break

down of computer/connectivity, are we insisting for alternates? It is pertinent

to bring it to the notice of esteem audience that in CCA Shimla office

due to daily interruption in power (many a times 4 to 5 hours), preparation

of presentation was delayed.


Cost benefit analysis shall be a critical component while

designing USOF subsidy schemes.

Instead of channelizing the subsidy through USPs , on which we do

not have effective control we should think about direct approach to

the ultimate beneficiaries. Against the subsidy for Kiosk through

USP of Rs.2,40,000/-, simple solution is to provide a branded

Laptop with a web camera and additional backup batteries which

will cost only Rs.30,000/- in bulk purchase that too with 3 years

maintenance warranty. The maintenance of the Laptop is easy as it

can be easily taken to the service center. If somebody raises the

questions of misuse of Laptops, it can be locked to the specified

websites.


� The spread of internet usages is not possible unless content is provided in

vernacular language. China success story of internet spread is due to their

efforts of making software in local language. The USOF can think about

projects of developing web browsers in local language and subsidizing the

project.

� USOF is giving subsidy for Towers for putting up to 3 BTS of different USPs.

BTS cost, cost for energizing 3 BTS with reliable power supply is exorbitant

in remote inaccessible hilly terrains. It is observed that in such type of remote

localities the users are limited. It is technically possible to use the single BTS

for all the USPs subscribers. Such amalgamation was done at the time of

flood emergency in Surat (Gujarat). USOF is contemplating of switching over

to renewable energy i.e. wind and solar power in remote areas. Field

experience suggests that only one BTS can be cost effective on renewable

energy as the space is the constraint to put up the solar panels batteries for

energizing 3 BTS.


Aghara Tower site in Distt. Chamba to approach the tower one has to climb 4500

feet approx. 4 Kms uphill. One BTS will be sufficient looking to the Density of the

population

Duplicity in IT related initiatives funded by GOI.

�Kiosks for local governance. In H.P. under Lok Mitra initiative,

3,366 common service centers are being planned under GOIs

“e-governance” subsidy scheme. IT branch of our Ministry is

funding this program.

�GOI is also sponsoring Disaster Management activities in all

the States for which all states are going in different directions.

� M.O.C. & IT has initiated ambitious plan of “Rajnish” of BB

highway connecting all the villages at the estimated cost of

1000 Cr. In this project instead of providing subsidy on

individual BB connection, Wi-Fi Towers can be constructed in

the center of the village and internet facility can be subsidized.

�

�Under GOI sponsored “Sarva Siksha Abhiyan mission”, all the

schools are linked up with internet and computers. These computers

are loaded with costly Micro Soft Windows & customize education

software‘s. USOF can take a lead, in developing & providing free

software on Linux platform in coordination with “NCERT”. The

computers also can be purchase in mass at lower rate with fixing

benchmark standards for Hardware and Software on open OS

standards. It is pertinent to note that DoT has created surplus cell

consisting of qualified Telecommunications and IT engineers. Which

can be utilized for the same.

�Under knowledge commission UGC program to interlink all the

Universities by 2 GB BB connections at the approx cost of 350 Cr. is

under the way.

Duplicity in IT related initiatives funded by GOI.

The USOF can be the catalyst in merging all

above mentioned activities by providing

Common network/platform.

Working in this direction, can fulfill the Universal

Service Obligation in real sense to the rural

India.

Thanks

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