DoT notifies first set of rules under Telecom Act; telecom fund Digital Bharat Nidhi comes into effect

The first set of rules under the Telecommunications Act, 2023- ‘Telecommunications (Administration of Digital Bharat Nidhi) Rules, 2024’ has been notified by the Department of Telecommunication.

The draft rules for the same was published on July 4, 2024 for a 30-day public consultation.

The Universal Service Obligation Fund created under the Indian Telegraph Act, 1885 has now been rechristened as Digital Bharat Nidhi vide section 24(1) of the Telecommunications Act, 2024, and it now addresses new areas which may require support from Digital Bharat Nidhi in changing technological times.

Union Minister of Communications, Jyotiraditya M Scindia took it to X and described the new rules as reflection of Government’s commitment to ensure equal access to telecom services and in turn strengthen India's mission of becoming Viksit Bharat by 2047.

The rules provide for the powers and functions of administrator, who will be responsible for overseeing the implementation and administration of the Digital Bharat Nidhi. The rules also provide for criteria for undertaking schemes and projects under Digital Bharat Nidhi and selection process for implementers.

The rules stipulate that funds from the Digital Bharat Nidhi will be allocated to projects aimed at improving telecommunication services in underserved and remote areas and for underserved groups of the society, such as, women, persons with disabilities and economically and socially weaker sections.

The schemes and projects funded under the Digital Bharat Nidhi need to meet one or more of criteria stipulated in the rules. These include projects for provision of telecommunication services, including mobile and broadband services and telecommunication equipment required for delivery of telecommunication services, and enhancing telecom security; improving access and affordability of telecom services and introduction of next-generation telecommunication technologies in underserved rural, remote and urban areas.

The criteria for undertaking schemes and project under Digital Bharat Nidhi also include promoting innovation, research and development; promotion and commercialisation of indigenous technology development and associated intellectual property including creation of regulatory sandboxes, where necessary; developing and establishing relevant standards to meet national requirements and their standardisation international standardisation bodies; to encourage start-ups in telecommunications sector; to create bridge between the academia, research institutes, start-ups and industry for capacity building and development; and to promote sustainable and green technologies in telecommunications sector.