Telecom Act to include new guidelines for Digital Bharat Nidhi

Under the Telecommunications Act, 2023, India has introduced the first set of regulations, known as the Telecommunications (Administration of Digital Bharat Nidhi) Rules, 2024. The recently released regulations seek to increase access to telecommunications services for underprivileged areas and inhabitants.

The Digital Bharat Nidhi (DBN) has replaced the Universal Service Obligation Fund (USOF). Parliament passed the Telecommunications Act, 2023, and the President signed it into law in December, establishing the DBN. The USOF was founded under the Indian Telegraph Act of 1885 to deliver telecom facilities in rural and remote regions at reduced rates through a universal access levy (UAL). The UAL represents 5% of the telecom company's adjusted gross revenue.

Union Minister of Communications Jyotiraditya Scindia praised the new rules in a statement on X (previously Twitter), saying they demonstrate the government's commitment to ensuring fair access to telecom services.

The DBN's key aims include nurturing homegrown technological growth, promoting telecom start-ups, and advancing environmentally conscious technologies. The standards also emphasize the significance of providing open and non-discriminatory access to sponsored telecommunications networks.

The draft regulations were issued for a 30-day public input on July 4, and the notified rules are essentially identical to the draft rules, with minor linguistic modifications. Sections 24–26 of the Act, which renamed the USOF as DBN and specified how its funding would work, went into force on June 26.

The new rules supersede rules 523–527 of the Indian Telegraph Rules, 1951, which outlined how the USOF would work. Nevertheless, until the new rules expire, the previous arrangement will remain in effect. USOF was granted statutory status in December 2003 by revisions to the Indian Telegraph Act (which has since been replaced by the Telecom Act of 2023).

The new regulations will specify the duties and responsibilities of the DBN administrator, who would oversee the fund's operation. Qualified projects for DBN funding must meet specific criteria, such as enhancing telecommunication services, encouraging innovation and research in the telecom industry, and expanding access to next-generation technology.

The DBN administrator will be appointed by the central government through a gazette notification. In order to facilitate continuity, the currently serving USOF administrator will be renamed as the DBN administrator. The administrator will choose "DBN implementers" through restricted to invitations bidding or by inviting applications. Bidding will be used to select implementers for areas with limited accessibility.