The conversion of USOF into Digital Bharat Nidhi signals a shift from 'access' to 'meaningful connectivity'. Critically analyse.

The Universal Service Obligation Fund (USOF), in force since 2002, was set up to fund telecom access in rural areas where it does not pay commercially. Under the Telecommunications Act, 2023 it was renamed Digital Bharat Nidhi (DBN) [1]. The mandate has clearly widened on paper. On the ground, delivery is still closer to "access" than to "meaningful use".

Signs of a shift towards meaningful connectivity

• Wider mandate: DBN funds BharatNet, 4G Saturation, and mobile coverage in LWE, border, Himalayan and island areas [1].
• Quality over coverage: The Amended BharatNet Program (₹1,39,579 crore) uses ring topology, IP-MPLS routers, remote fibre monitoring and 10-year O&M. It is designed for uptime, not just for laying cable [2].
• Last mile: It covers villages beyond GP headquarters on demand. Maharashtra's agreement alone expects 9 lakh+ home fibre connections [1].
• Cooperative federalism: In the State-led model, the Centre funds the work and State SPVs such as MDIL carry it out [1].
• Demand side: PMGDISHA digital literacy (6.39 crore people trained) complements the supply of connections [2].

Why the shift remains incomplete

• Access is not use: By November 2025, 96.70% of targeted GPs were "service-ready", but only 33.20% were working. Only 17.91% of bandwidth was used [3].
• Weak maintenance: Fibre faults took 17 days on average to fix. Power faults made up 64.29% of fault tickets [3].
• Paper outputs: CAG found no FTTH connections in the 131 GPs it checked in person [3]. Only 766 of about 1 lakh GP Wi-Fi hotspots were active [4].
• Spending capacity: BharatNet funds have been underused since 2022-23. In 2025-26, spending at the revised stage was 75% below the budget [4].
• Institutional risk: BSNL is now the single PMA, yet the CPSU-led model had the worst uptime. TRAI has also flagged a conflict of interest in BSNL running the network while competing with operators who rent it [3].

Overall, the renaming marks a real change of intent, from laying cable to keeping a usable service running, but results are still measured mostly as access. CAG recommends paying partners for uptime above 95%, linking State NOCs to the Central NOC, and copying Gujarat's independent power supply and "Call Before You Dig" practice [3]. Following these would turn DBN's mandate into meaningful connectivity and advance SDG 9.c on universal, affordable internet.