PTCL and Ufone Secure Majority Share of Rs77Bn from USF Subsidies

ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) and Ufone have secured a significant portion of around Rs77 billion, accounting for 54 percent of the total Rs141.66 billion in subsidies awarded by the Universal Service Fund (USF) so far. This initiative aims to expand telecom services to unserved and underserved areas of the country.

The USF has allocated Rs141.66 billion in subsidies to telecom operators for implementing approximately 150 projects focused on enhancing telecom accessibility in remote regions.

However, sources told TechJuice that USF faces multiple challenges, including security concerns and equipment theft, which have hindered progress and delayed project execution. Established in 2007, the fund is dedicated to extending cellular, broadband internet, fiber optics, and other telecom services to underdeveloped areas. All telecom companies contribute 1.5 percent of their revenues to the fund, generating approximately Rs7-8 billion annually. Before the launch of USF in 2006-07, telecommunications coverage in Pakistan stood at around 44 percent.

Breakdown of USF Subsidy Allocations:

• Ufone: Rs40.494 billion (28.6%)
• PTCL: Rs36.648 billion (25.9%)
• Telenor: Rs30.041 billion (21.2%)
• Jazz: Rs13.784 billion (9.7%)
• Nayatel: Rs6.007 billion (4.2%)
• Zong: Rs5.637 billion (3.9%)
• Wateen: Rs4.847 billion (3.4%)
• World Call: Rs1.273 billion (0.9%)

An official stated that the “Broadband for Sustainable Development” programme under USF is designed to deliver telecom services to unserved mauzas (villages) across Pakistan. Following the issuance of 3G/4G licenses by the federal government, the programme was restructured to include broadband internet services as a mandatory component.

To ensure sustainable power solutions, new projects incorporate solar energy to power telecom sites. As per official documents, 1,699 Base Transceiver Stations (BTS) have been installed, covering 12,825 mauzas.

The USF aims to advance telecom development in unserved and underserved rural regions, making voice telephony and basic data services more accessible and affordable nationwide. A crucial aspect of this mission is the establishment of a stable and reliable optic fiber network, connecting all regions of Pakistan. The initiative extends fiber connectivity to unserved tehsil headquarters, addressing the rising demand for voice, data, and video services in these areas.

Extending fiber optic cables to tehsils enables telecom providers to offer comprehensive services in remote areas. This initiative is akin to constructing digital highways, ensuring connectivity to all tehsils. So far, 56 tehsils and 26 towns have been connected, with 6,447 km of fiber optic cable laid.

The Next Generation – Broadband for Sustainable Development Programme (NG-BSD) for National Highways and Motorways is a pioneering initiative by USF, providing seamless voice and broadband services in previously unserved patches along highways and motorways. Unlike conventional coverage projects, this programme is tailored to serve commuters rather than residents.