Consider the following statements in context of Universal Service Obligation Fund USOF It was s...........

Economic Affairs Industrial sectors

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Consider the following statements in context of Universal Service Obligation Fund (USOF) :

It was setup under ministry of finance.
All credits to this fund require parliamentary approval.
It is a non-lapsable fund.

Which of the statements given above is/are correct?

1 and 2 only

2 and 3 only

1 and 3 only

All of the above

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Explanation:

Explanation

Universal Service Obligation Fund (USOF)

Apart from the higher capital cost of providing telecom services in rural and remote areas, these areas also generate lower revenue due to lower population density, low income and lack of commercial activity. Thus normal market forces alone would not direct the telecom sector to adequately serve backward and rural areas. Keeping in mind the inadequacy of the market mechanism to serve rural and inaccessible areas on one hand and the importance of providing vital telecom connectivity on the other, most countries of the world have put in place policies to provide Universal Access and Universal Service to ICT.

The New Telecom Policy - 1999 (NTP'99) provided that the resources for meeting the Universal Service Obligation (USO) would be raised through a 'Universal Access Levy (UAL)', which would be a percentage of the revenue earned by the operators under various licenses. The Universal Service Support Policy came into effect from 01.04.2002. The Indian Telegraph (Amendment) Act, 2003 giving statutory status to the Universal Service Obligation Fund (USOF) was passed by both Houses of Parliament in December 2003. The Rules for administration of the Fund known as Indian Telegraph (Amendment) Rules, 2004 were notified on 26.03.2004. As per the Indian Telegraph Act 1885 (as amended in 2003, 2006 and 2008), the Fund is to be utilized exclusively for meeting the Universal Service Obligation

USOF ensures that there is universal non-discriminatory access to quality ICT services at economically efficient prices to people in rural and remote areas.Currently, it is charged at the rate of 5%, while the TSPs demand it to be reduced to 3%.
It was created under the Department of Telecommunications in 2002.
It is a non-lapsable fund, i.e., the unspent amount under a targeted financial year does not lapse and is accrued for next years’ spending.
All credits to this fund require parliamentary approval and it has a statutory support under Indian Telegraph (Amendment) Act, 2003.