Salient Features Of Agreements

1. OPERATION AMD MAINTENANCE OF VILLAGE PUBLIC TELEPHONES

·                    The Agreement is valid for a period of seven years.

·                    SSA-wise technology specific Representative Rate for which subsidy is to be given forms part of the agreement.

·                    For wireless technologies, WLL rate shall apply wherever no Representative Rate has emerged, unless specifically allowed.

·                    The VPTs on any wireless technology shall be provided using Fixed wireless Terminals (FWTs)

·                    Review of representative Rate in the third year taking into account, inter-alia, the increase in revenue on account of provision of STD facility.  The revised rates to be applicable from the 4^th  year onwards (already undertaken)

·                    Disbursement of subsidy to be made quarterly undertaken).

·                    Claims to be submitted within 30 days from the close of the quarter. (revised from the earlier 15 days).

·                    For amounts received in excess of 10% of the subsidy due for a financial year, the entire amount paid in excess shall be recovered along with an interest from the date of disbursement at the Prime Lending Rate of SBI.

·                    Deduction of  pro-rata  subsidy on account of  telephones remaining faulty for more than seven days in a quarter.  In cases where the VPT remains faulty for 45 days or more in a quarter, no subsidy for the entire quarter shall be allowed.

·                    With effect from the quarter ending 30.09.2004, VPTs that remain disconnect -ed  on account of non-payment and VPTs that  register no incremental meter reading during the entire quarter shall not qualify for any support for that quarter vide letter No. 30-101/2002-USF dated 14-09-2004.

·                    MARR VPTs on their replacement will not be eligible for subsidy under this Agreement.

·                    The Universal Service Provider may change the location of VPTs to provide better access to the public within the same village.  No payments for relocating the VPTs will be made from USOF on the expenditure incurred on relocation.

·                    Performance Bank Guarantee (PBG) equivalent to one quarter’s subsidy   payable for all the VPTs in the Service Area for which the Agreement has been entered into.  For BSNL the requirement for submission for PBG has been waived as long as it is a 100% Govt. owned company.  The PBGs are presently being kept at USF HQs.

·                    The Agreement for J&K Service Area will be renewed Yearly.

2. REPLACEMENT OF MARR VILLAGE PUBLIC TELEPHONE

·                    Subsidy for a VPTs shall be for seven years from the date of its replacement or up to the date of termination of Agreement, whichever is earlier.

·                    Roll-out obligation prescribing 50% of the MARR VPTs in the Service Area to be replaced within one year from the effective date of the Agreement and the balance within two years from the effective date of the Agreement.  The period has been extended to 3 years vide letter No. 30-107.2002-USF dated 21/10/2004.

·                    Provision of Liquidated Damages in case of non-fulfillment of the roll out obligation.  The liquidated damages shall be at 10% of the annual subsidy payable for those VPTs for each calendar month of delay or part thereof, subject to a maximum of 20% of the annual subsidy payable.

·                    SSA wise technology neutral Representative Rates.

·                    Review of representative Rate in the third year taking into account, inter-alia the increase in revenue on account of provision of STD facility.  The revised rates to be applicable from the 4^th year onwards.  The review has already been undertaken.

·                    Disbursement of subsidy to be made quarterly in arrears.

·                    Claims to be submitted within 30 days from the close of the quarter.

·                    For amount received in excess of 10% of the subsidy due for the financial year, the entire amount paid in excess shall be recovered along with an interest from the date of disbursement at the Prime Lending Rate of SBI.

·                    Deduction of pro-rata subsidy on account of telephones remaining faulty for more than seven days in a quarter.  In cases where the VPTs remains faulty for 45 days or more than in a quarter, no subsidy for the entire quarter shall be allowed.

·                    With effect from the quarter ending 30-09-2004 VPTs that remain disconnected on account of non payment and VPTs that register no incremental meter reading during the entire quarter shall not qualify for any support for that quarter.

·                    Since BSNL only has emerged as the successful bidder, no performance Bank Guarantee has been imposed.  For BSNL the requirement for submission of PBG has been waived as long as it is a 100% Government owned Company.

3. PROVISION OF RURAL COMMUNITY PHONES  

·                    The Agreement is  valid for a total period of  8  (Eight)  years  from  the Effective date.  The subsidy support shall be extended up to a maximum period of 5 (Five) years from the date the VPT/RCP is installed and made functional.

·                    The universal Service Provider shall receive the Subsidy consisting of a  front loaded subsidy component and equated annual subsidy upto a maximum  period  of  five years, from the date the VPT/RCP  is provided and  made functional .

·                    The front loaded subsidy shall be given at the end of the quarter in which VPT is installed and made functional.  The equated annual subsidy shall be disbursed in four quarterly installments during each financial year, with each quarter ending on 30^th of June, 30^th of September and 31^st of March.

·                    Deduction of pro-rata subsidy on account of telephones remaining faulty for mare than seven days in a quarter.  In cases where the VPT/RCP  remains faulty for 45 days or more in a quarter, no subsidy for the entire  quarter shall be allowed.

·                    VPTs/RCPs  that register no incremental   meter reading/calls or  remain  disconnected due to non-payment during an entire quarter shall not qualify for subsidy support for that quarter.

·                    Roll out obligation: At least 20% of  the VPTs/RCPs shall be provided  by the end of 2^nd year. The balance of the VPTs/RCPs shall be provided by the end of third year from the effective date of Agreement.

·                    For the shortfall in providing the required number of VPTs/RCPs by the end of second third year respectively, liquidated Damages at the rate of 5% of front loaded subsidy payable for those VPTs/RCPs for each calendar month of delay or part thereof, subject to a maximum of 10% of the front loaded subsidy thus payable for those VPTs/RCPs shall be recovered, unless the delay has been condoned.

·                    The universal Service Provider shall submit a Performance Bank Guarantee(PBG) valid for one year equivalent to front loaded subsidy disbursable under the Agreement for 2% of the VPTs/RCPs in all the SSAs of the Service Area for which the Agreement is entered into.

·                     From the start of the second year the amount of PBG shall have to be equivalent to the front loaded subsidy disbursable under the Agreement for 60% of the VPTs/RCPs in all the SSAs of the Service Area for which the Agreement is entered into. The PBG shall be reduced to its original amount from the start of the fourth year or on completion of the roll out obligation by installing all VPTs/RCPs in all the SSAs of the Service Area for which Agreement is entered into, whichever is later.  For BSNL the requirement for submission of PBG has been waived as long as it is a d100% Government owned Company.  The Performance Bank Guarantees are being presently maintained at USF HQs.

4. SALIENT FEATURES OF AGREEMENT FOR PROVISION OF RURAL HOUSEHOLD DELS (INSTALLED PRIOR TO 1.4.2002)

·                    Support has been provided for Rural household Direct Exchange Lines (DELS) installed prior to 1.4.2002 to BSNL on the terms and conditions specified.  No other Private Basic Service Operators has furnished any claim

·                    The period of Subsidy support from Universal Service obligation Fund is 1.4.2002 to 31.01.2004.

·                    Only the rural household DELs on Fixed line telephony Service including wireless in local loop technology (Fixed) qualify for subsidy support from USOF.  Public telephones (PCOs/VPTs) and WLL (Mobile) and other Mobile Services are NOT eligible for subsidy support from USOF.

·                    The Subsidy support from USOF for each rural household DEL is the difference between the monthly Rental prescribed by TRAI and the monthly Rental charged by the Service Provider.

·                    The rural household DELS that are closed permanently between 1.4.2002 to 31.1.2004, either on account of surrenders or on account of non-payment by the subscribers, shall be eligible to receive subsidy support from USOF from 1.4.2002 till the end of the month preceding the month in which they are closed.

·                    The subsidy support from USOF is to be disbursed in two installments-one covering the financial year 2002-03 and the second installment covering the period 1.4.2003 to 31.01.2004.

·                    The source of information for filling the claim is the billing record.

·                    Roll out    

  E.        SALIENT FEATURES OF AGREEMENT FOR PROVISION OF RURAL HOUSEHOLD DELS 
(INSTALLED DURING 1.4.2005 TO 31.3.2007)  

·                    The Rural Household Direct Exchange Lines (RDELS) shall be provided in the specified short distance charging areas(SDCA).

·                    The support to be given will comprise a front loaded subsidy and an equated annual subsidy where payable based on Capital Recovery annualized over a period of seven years and annual Operation and Maintenance expenditure for provision of the customer premises terminal equipment inclusive of the local loop minus the annual Revenue.  Only the rural household DELs installed after the effective date of the Agreement, on fixed wire lines (Landline) and wireless in local loop technology (Fixed WLL) will qualify for subsidy support from USO Fund.  Public telephones (VPTs/PCOs/RCPs) WLL (Mobile) services will not be eligible for subsidy support from USO Fund under this Agreement.

·                    The Agreement shall be valid for a period of 5 years from 1.4.2005.

·                    The Universal Service Provider shall receive the Subsidy towards Rural Household DELs installed up to 31.03.2007.  The equated annual subsidy where payable shall be paid from the date the rural household DEL is installed and made functional up to the validity period of the Agreement..

·                    The front loaded subsidy shall be payable only for net addition of rural household DELs in a local exchange area.  Net addition shall mean the number of RDELs added after making adjustment for RDELs closed permanently on account of surrenders, non-payment or shifts out of the Local Exchange Area.

·                    The Universal Service Provider shall be eligible to submit the claim for front loaded subsidy at the end of the quarter in which the Rural Household DELs are installed and made functional.  The equated annual subsidy where payable shall be disbursed in four quarterly installments during each financial year, with each quarter ending on 30^th of June, 30^th of September, 31^st of December and 31^st of March.

·                    Deduction of pro-rata equated annual subsidy on account of telephones remaining faulty for more than seven days in a quarter.  In case where the DEL remains faulty for 45 days or more in a quarter, no subsidy for the entire quarter shall be allowed.

·                    Where the Representative Rate for the Equated Annual Subsidy is zero, Rs. 250 (two hundred and fifty) shall be taken as the rate of Equated Annual Subsidy for the purpose of deduction on account of faults.

·                    Initially, the amount of Performance Bank Guarantee shall be Rs. 50 lakhs (Rs. Fifty Lakhs), to be submitted within seven days of issue of letter of intent.

·                    For  the  2^nd and  3^rd  year of  the Agreement,  the amount  of   PBG  shall be equivalent to 25% of  the front loaded  subsidy  payable during the previous year or Rs. 50 Lakhs, whichever is higher.  From 4^th year onwards and till the validity period of the Agreement, amount of PBG shall be Rs. 50 lakhs (Rs Fifty Lakhs).

·                     For BSNL the requirement for submission of PBG has been waived as long as it is a 100%  Government owned Company.

·                     ROLL  OUT: At least 100 rural household DELs should be provided within six months from the effective date of the Agreement in each of the SSA within the Service Area for which the Agreement is signed based on a waiting list to be maintained.  After six months from the effective date of the Agreement, all wait-listed subscribers shall be provided with rural DELs within a period of three months of registration.

·                     For the RDEls not provided as per the Rollout required to be achieved, without prior written concurrence of the Administrator, the delayed period shall entail recovery of Liquidated Damages (L.D.).

·                     For Rural DELs installed during 1.4.2002 to 31.3.2005 similar Terms and conditions would be applicable except that.

(i)                the Roll Out Obligation is not part of the Agreement,

(ii)              the period of support will be for five years from the date of installation of the RDEL and

(iii)            the quarterly claims for period that has already elapsed can be submitted together.  

F. Quality of Service Parameters (VPTs/RDELs/RCPs) 

 ● The Quality of Service Parameters for Basic Telecommunication Services as prescribed by TRAI shall prevail.

 ●  The Universal Service Provider shall ensure the Quality of Service (QoS) as prescribed by the TRAI from time to time.  The Universal Service Provider shall adhere to such QoS  standards and provide timely information as required therein.

 ● The ADMINISTRATOR or TRAI may carry out performance tests either directly by themselves or through authorized agency and also evaluate the QoS parameters for the RDELs/RCPs/VPTs at any time during the validity period of the AGREEMENT. The Universal Service Provider shall provide ingress and other support including documents, instruments, equipments, equipment etc. for carrying out such performance tests and evaluation of Quality of Service Parameters.

 ●  The Universal Service Provider will keep a record of RDELs/RCPs/VPTs indicating faults and rectification reports and other related details in respect of the service rendered, which will be produced before the ADMINISTRATOR or TRAI as and when and in whatever from desired.

 ● The Universal Service Provider shall be responsive to the complaints lodged by its customers.  They shall rectify the deficiencies and maintain the history sheets for each installation, statistics and analysis on the overall maintenance status.

 ●  Proper arrangement should be made by the USPs for reporting / booking faulty RDEL/RCPs/VPTs and its regular testing.  Print out of line tests of RDELs/RCPs/VPTs and record of metered call units (MCUs) should be preserved by the Universal Service Provider for a period of at least six months or till the final settlement of subsidy claimed, whichever is later.

Note: Information as on 01/07/2011

The Office of CCA Haryana is not responsible for any typing errors on this page.

This page is maintained and updated by CAO (USO) Shri R.K.Sharma