Universal service obligation
Also called: USO · Topic: Infrastructure: Transport, Communications and Energy · NCERT: Beyond NCERT
Meaning
A universal service obligation (USO) is the duty to make a basic service, such as telecom, available to everyone. That includes remote and poor areas where private companies earn too little to invest on their own. It is usually paid for by a levy on operators. In Indian telecom, the licence fee of 8% of adjusted gross revenue includes a 5% USO levy.
Example
The Universal Service Obligation Fund pays for projects like BharatNet, which takes optical fibre to gram panchayats. Under the Telecommunications Act 2023, the fund was renamed Digital Bharat Nidhi.
Don't confuse with
- Cross-subsidy: Under a cross-subsidy, some consumers pay above cost so that others can pay below it within the same tariff. A USO is a duty to serve everyone, and it is paid for by a separate levy that goes into a fund.