COMPANY PROFILE
Universal Service Fund was established by the Government of Pakistan (Ministry of Information Technology) to spread the benefits of the telecom revolution to all corners of Pakistan. Universal Service Fund promotes the development of telecommunication services in un-served and under-served areas throughout the length and breadth of the country.
The fund consists of contributions (1.5% of adjusted revenues) by the Telecom Operators with no Government funding involved. To utilize this fund for the achievement of the targets, it was decided to follow a Corporate Model. This led to the establishment of the Universal Service Fund (USF) Company under Section 42 of the Companies Ordinance 1984. Universal Service Fund (USF) has an independent Board of Directors equally balanced between four members from the government and four from the private sector (industry and consumers).
The structure of USF Company is the first of its kind in Pakistan and a Corporate Model is being followed for achieving the targets set for the company in USF policy. USF Company has an independent and diversified Board of Directors which is equally balanced between four members from the government and four from the private sector. CEO is the 9th director of the Board.
Given below is the composition of the board:
| Public Sector | Private Sector |
| Secretary IT, MoITT | Nominee of Fixed Line Operators |
| CEO NITB | Nominee of Mobile Cellular Operators |
| Chairman, PTA | Nominee of Data Licensees |
| Member Telecom, MoITT | Nominee of Consumer Group |
| Chief Executive Officer-USF | |
The main objectives of the Universal Service Fund (USF) are:
1- To bring the focus of telecom operators towards the rural population and increase the level of telecom penetration significantly in the rural areas through effective and fair utilization of the fund.
2- To improve the Broadband penetration in the country.
3- To bring significant advances towards the enhancement of e-services, both in rural as well as urban areas of the country.
Universal Service Fund (USF) finances the spread of telecom services to previously un-served or under-served areas and makes it possible for licensed telecom operators to provide services to those areas, on normal commercial (read: competitive) terms. Telecom services include basic telephony, broadband internet, infrastructure for these services (like Optic Fibre) and Community Tele-centers (for those who cannot afford the necessary instruments/devices). The challenge before USF is to achieve the targets through an efficient and transparent competitive bidding process. Therefore, all disbursements of the fund are done through competitive bidding, encouraging full competition among telecom licensees.
USF has been running and completed some of the Next Generation Broadband for Sustainable Development Projects in un-served areas (“Lots”), for which contracts have been signed with major telecom service providers in the country for providing hi-speed broadband services. These projects have been bearing fruits and telecom services have started in several lots. This Program is also giving a boost to the provision of other e-services like e-health, e-government, e-commerce etc.
In addition to the above, NG-BSD for National Highways & Motorways is the first of its kind initiative of USF whereby the unserved patches on the National Highways and Motorways are being provided with voice and broadband data services.
Another Program aims to extend the reach of Optic Fibre Connectivity to Union Councils. Extending Fibre cables to Union Councils will help the telecom service providers in providing all kinds of telecom services to those areas. It is like building information motor-ways.
Moreover, projects like ICTs for Girls, have been successfully running for making telecom facilities accessible for all.
The challenge before USF is to achieve the targets through an efficient and transparent competitive bidding process. Therefore, all disbursements of the fund are done through competitive bidding, encouraging full competition among telecom licensees. Request for proposals for projects and procuring official items/consultancy services are made in complete conformity with PPRA Rules. These advertisements are released in newspapers and on USF and PPRA Websites. USF is audited twice a year by professional external auditors.