New Delhi, Feb 10: Government has invited bids for operation and maintenance of existing Village Public Telephones (VPTs) for which the financial support would be provided from the fund created for this purpose. Last date for submission of bids is February 28 and sale of tender documents started today. Government had last year created a Universal Service Obligation (USO) fund for offering financial assistance to telecom companies for providing services in unprofitable locations like rural and far-flung areas. The Department of Telecommunication (DoT) has decided to invite bids from the interested parties for the O&M of existing VPTs while for setting up new phones and network telecom companies would be invited separately.

Most of the private basic telecom players have failed to meet their license obligations to provide telephone services in the rural areas, mainly due to the high cost of setting up infrastructure and low return on the investments.

Government charges upto five per cent of gross revenue of telecom companies, both cellular and basic service providers, as contribution to USO fund which is used for compensating the unprofitable ventures like VPTs.

The sale of tender document would close on February 27, an official release said.

Bureau Report