It is an ambitious programme of department of telecommunication to provide network infrastructure with affordable broadband connectivity on a non-discriminatory basis to all households in the country.
It aimed to realize the vision of Digital India, in partnership with States and the Private Sector.
The programme, previously called as the National Optical Fibre Network, was approved in October 2011.
It is implemented in three phases
First phase – providing broadband connectivity to one lakh gram panchayats by 2017
Second Phase – providing broadband connectivity to 2 lakh gram panchayats by 2019
Third Phase – providing state-of-art network using fibers between districts and block with reduced redundancy by 2023.
Implementation will be done by the states, state agencies, private sector companies and central PSUs.
All the Service Providers like Telecom Service Providers (TSPs), ISPs, Cable TV operators etc. will be given non-discriminatory access to the National Optic Fibre Network and can launch various services in rural areas.
It is funded from Universal Service Obligation Fund, which will be its nodal agency.
Bharat Broadband Network, a SPV created under companies Act, mandated to create NOFN in India.
Universal
Service Obligation Fund
The fund was established in 2002 to be utilized for providing telegraph services across the country especially the rural and remote areas.
It receives funds from the Universal Service Levy (USL) of 5% charged from all the telecom operators on their gross revenue.
Funds are dispatched through a bidding process to an enterprise which works on providing tele service to areas where ICT services are not available due to commercial non-viability combinations of reasons such as:
Remoteness of areas
Absence of supporting infrastructure (power, road etc.)
Low income of inhabitants
Insurgency
Difficult terrain
It is here that USOF Administration steps in to provide subsidy support thereby incentivizing telecom service providers to venture forth and provide services to such target beneficiaries.