Establishment
The establishment of USF was envisaged in Pakistan Telecom Act 1996/2000 according to which all licensed telecom operators contribute to this Fund. In order to utilize this fund for achievement of targets, Government of Pakistan decided to follow a “Public Private Partnership” Model. Therefore, USF Co. has an independent Board of Directors consisting of equal number of members from the Government and private sector. As per the USF rules 2006 notified on November 1, 2006, the Federal Government has the possession, management and control of the Fund, its income, undertakings, properties and assets. Federal Government makes quarterly releases to USF Company as per the approved budget.
In order to achieve its objectives, USF finances spread of telecom services to previously un-served or under-served areas and makes it possible for already licensed operators to provide telecom services to those areas, on normal commercial (read: competitive) terms. Telecom services include basic telephony, broadband internet, other infrastructure for these services and (for those who cannot afford the necessary instruments/devices) Tele-centers. Challenge before the Company is to achieve the targets through an efficient transparent, competitive process. Therefore all disbursements of Funds are done through open competitive bidding, encouraging full competition among telecom licensees.
In a very short period of time, USF under the guidance of the Board, started working independently i.e. hired competent professionals and developed the company policies subsequently approved by the board which laid the solid foundation to make a start.
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