Introduction
The Ministry of Communications, Government of India, on 30th August 2024, notified The Telecommunications (Administration of Digital Bharat Nidhi) Rules, 2024, which came into force on 31st August 2024. These rules are an extension of the Telecommunications Act, 2023, and aim to streamline the implementation and administration of the Digital Bharat Nidhi (DBN) initiative.
The Digital Bharat Nidhi (DBN) is a fund introduced by the Government of India with the aim of improving the quality and reach of telecommunications services in the rural and remote parts of the country as well as underserved urban areas with poor or substandard Telecommunication connectivity. The establishment of DBN is integral to a comprehensive strategy aimed at bridging the prolonged digital divide of the country and advancing the Digital India mission, which aspires to transform India into a digitally empowered society and a knowledge-based economy.
Background and Establishment of Digital Bharat Nidhi
The Universal Service Obligation Fund (USOF), created under the Indian Telegraph Act, 1885, has now been rechristened as Digital Bharat Nidhi via Section 24(1) of the Telecommunications Act, 2023. Digital Bharat Nidhi (DBN) is established to address the shortcomings of the Universal Service Obligation Fund.
Sections 24 and 25 of the Telecommunications Act, 2023, outline the funding mechanism for the Digital Bharat Nidhi (DBN). The contributions made by the telecom companies which is topped at 5% of their Adjusted Gross Revenue (AGR) are first credited to the Consolidated Fund of India (CFI) and then transferred to the DBN. These funds are utilized to promote telecommunication services, support research and development, fund pilot projects, and provide consultancy and advisory assistance.
Benefits of Digital Bharat Nidhi
The Digital Bharat Nidhi (DBN) offers several benefits aimed at transforming the telecom sector in India. Key advantages of this scheme are as follows:
- Improving Connectivity in Underserved Areas
Digital Bharat Nidhi (DBN) focuses on improving telecom services in underserved rural and remote areas of the country, ensuring that even the most isolated regions have access to reliable and high-speed internet. Apart from fostering change in the telecommunication infrastructure of rural and remote regions, DBN also targets urban areas of the country which lack adequate telecom infrastructure. Private companies often overlook these regions due to low revenue potential. DBN aims to expand telecom networks in these underserved areas to ensure that all citizens have access to essential communication services. - Support for Innovation
Digital Bharat Nidhi (DBN) aims at funding research and development projects to foster and develop new technologies and services in the telecommunications domain. DBN aims to achieve this target by supporting new start-ups and pilot projects, promoting innovation and the commercialization of indigenous technologies. This is a crucial step for advancing next-generation telecommunication technologies and strengthening the digital infrastructure of the nation. - Upliftment of Telecom Security and Standards
Funds from the Digital Bharat Nidhi (DBN) will be allocated to significantly enhance telecom security across the nation. This includes implementing advanced security measures to protect against cyber threats, ensuring that telecommunications services are not only safer but also more reliable for all users. By fortifying the security infrastructure, the DBN aims to build a robust defence against potential vulnerabilities and attacks, thereby fostering a secure digital environment.
Additionally, the initiative is committed to setting high standards within the telecom sector. This involves promoting adherence to international benchmarks and best practices, which will help elevate the quality and competitiveness of Indian telecommunications on a global scale.
Impact on the Telecom Sector
- Infrastructure Development
DBN aims at supporting the introduction of next-generation telecommunication technologies, keeping the sector at the forefront of technological advancements. Apart from this, DBN aims to provide financial support to telecom operators who receive subsidies to extend their services to previously underserved areas, leading to a more extensive and robust telecom network in the country. - Digital Inclusion and Empowerment
By subsidizing telecom projects, DBN will act as a catalyst in making telecom services more affordable and accessible for end consumers in underserved areas. This will result in disbursing the targeted telecommunication services to economically and socially weaker sections of society. This aligns DBN with the broader goal of digital inclusion and empowerment. One of the primary objectives of the DBN is to ensure that telecom networks and services are provided on an open and non-discriminatory basis. This will help in the creation of a more equitable and inclusive digital ecosystem. - Boost to Local Economy
By providing better connectivity, DBN promotes digital inclusion, which will eventually lead to economic growth in underserved areas. The expansion of telecom infrastructure and services will result in creating numerous employment opportunities across various sectors such as e-commerce, online education, and telemedicine in underprivileged areas, thereby transforming the fate of underprivileged communities.
Conclusion
The Digital Bharat Nidhi (DBN) initiative represents a significant step forward in bridging the digital divide in India. By focusing on improving connectivity in underserved areas, supporting innovation, and enhancing telecom security and standards, DBN aims to transform the telecommunications landscape of the country. The initiative not only promises to boost infrastructure development and increase access and affordability but also aims to foster digital inclusion and empowerment. Furthermore, by promoting better connectivity, DBN is poised to stimulate economic growth and create numerous employment opportunities in underprivileged areas. Overall, the Digital Bharat Nidhi (DNB) is a crucial component of India’s broader strategy to become a digitally empowered society and a knowledge-based economy, additionally DBN would emerge as a gamechanger to contribute towards India’s goal of becoming ‘Viksit Bharat’ by the year 2047.
Disclaimer
The information provided in this article is intended for general informational purposes only and should not be construed as legal advice. The content of this article is not intended to create and receipt of it does not constitute any relationship. Readers should not act upon this information without seeking professional legal counsel.
