In an order to promote telephone and broadband services in villages, the Telecom Commission, the policy-making body under the Department of Telecommunications (DoT), has decided to waive the licence fee on rural landline phones besides reducing levy towards the “universal service obligation” (USO) fund.

The decision is also anticipated to give a boost to e-governance through provision of more broadband services in villages, thus reducing the digital divide.

The decision was made in the recent meeting of the Telecom Commission, Department of Telecommunications in New Delhi. The waiver is expected to make the Centre loose as much as Rs 200 crore annually.

The Telecom Commission has also decided to reduce the levy towards the USO fund from the present 5 per cent to 3 per cent of the adjusted ground revenue (AGR), which is applicable for those telecom service providers who have already covered more than 95% of rural areas.

The USO Fund is meant to support telecom players in rural and remote areas, so that subscribers there can avail of affordable tariffs. The measure is expected to encourage private players to go into rural areas, and boost the telephony user base there through cheaper tariffs.

According to market experts, Bharat Sanchar Nigam Ltd (BSNL), could be the biggest beneficiary of this sop as it is present in the remotest parts of the country.