Telcos Bharti Airtel and Reliance Communications (RCOM) are reportedly in talks with the government to exit the rural telephony scheme, which is part of the Universal Service Obligation Fund (USOF).
The Fund was established in 2003 to provide access to…
Telcos Bharti Airtel and Reliance Communications (RCOM) are reportedly in talks with the government to exit the rural telephony scheme, which is part of the Universal Service Obligation Fund (USOF).
The Fund was established in 2003 to provide access to basic telegraph services to people in rural and remote areas at reasonable prices.
The Economic Times wrote that both companies are looking to terminate their involvement in the scheme although they have not fulfilled their obligations contracted when winning bids in 2007.
USOF officials were quoted saying that RCOM only has 500 base stations active out of the 8000 it had pledged to build.
According to the newspaper, the Telecom Ministry is now considering banning Bharti and RCOM from participating in the next round of bidding, which is due soon.
The companies could not be reached for comment before the press deadline.
