BSNL to use USO fund to pump in Rs 2,000 cr for Wi-Max rollout

KOLKATA: Bharat Sanchar Nigam Ltd (BSNL) will invest Rs 2,000 crore for rollout of Wi-Max technology based services in the rural areas by 2010 from the Universal Service Obligation (USO) fund, a company official said here on Friday.
    
BSNL CGM S K Chakravarty (Calcutta Telephones) in an interactive session with the Merchants Chamber of Commerce (MCC) members, said, "out of total planned capex for Rs 4,000 for Wi-Max rollout, government has given go-ahead to use Rs 2,000 crore from the USO fund."
    
The USO fund is accumulated from a charge levied upon on private telecom operators and paid to BSNL for providing telecom services in rural areas.
    
BSNL has set a target to connect 25,000 villages via Wi-Max technology based telephony and braodband between 2008 and 2010.
    
Department of Telecom and Ministry of HRD had signed an agreement to connect 40,000 schools with broadband by 2010.
    
"Tendering for Wi-Max is likely anytime and we intend to rollout in 2008," Chakravarty said.
    
Wi-Max rollout in 70 cities including Kolkata will require another Rs 2,000 crore.
    
India has missed its earlier target of nine million broadband connection by 2007 and currently is 2.4 million. Now the country aims to have 20 million broadband connections by 2010.
    
Meanwhile, BSNL has drawn a capex of Rs 93,521 crore over the next three years and double its revenue to USD 20 billion.