
--
Currently 11 Billion USD is Languishing Unused in Universal Service Funds, With 4.1 Billion USD Sitting in India's Fund Alone
New Delhi: Following extensive research, the GSMA today called for governments and regulators to reassess their approach to Universal Service Fund (USF) levies. In a new report issued today, the GSMA concludes that most funds are not succeeding in delivering their stated goal of widening access to telecommunication services and that alternative market-based solutions are more effective.
The report estimates that more than one-third of the 64 funds surveyed have yet to disburse any of the contributions they have collected and that more than 11 billion USD remains undisbursed, money that could otherwise be used to extend rural coverage or lower the cost of mobile ownership. In India, the Universal Service Obligation Fund (USOF) continues to impose approximately a five per cent levy on operator revenues, despite the fact that is contains over 4 billion USD of accumulated funds. India is not alone as regards the collection of substantial amounts of money from the mobile industry, for example in Cote D'Ivoire and Paraguay, the USF represents in excess of 0.6 per cent of the countries' GDP.
Our research shows that, despite the fact that there is an ever-increasing amount of money sitting unused in these funds, governments continue to collect still more from the mobile operators. The situation needs urgent government review and attention, as the money collected to date far exceeds the amount that is needed to ensure universal access, said Tom Phillips, Chief Regulatory and Government Affairs Officer, GSMA. The reality is that these funds have become a convenient form of taxation on the telecommunications industry and in the majority of cases, they should be closed down and the balance of monies held used to extend access to mobile services to those unable to afford them, or those groups that live in particularly remote areas.
Key findings of the research:
Out of the 64 funds surveyed, less than an eighth of them are achieving their targets;
Funds are not always allocated in a competitively and technologically neutral way;
There is no evidence that Universal Service Funds are an effective way to achieve universal service goals and in fact they may be counter-productive, as taxing commercial investors in such a way makes rural investments less likely; and
Alternative solutions, for example private/public partnerships such as those established in Finland, have been able to deliver better and more effective outcomes.
Of all the funds surveyed globally, Colombia offers an outstanding example of best practice in the administration of USFs. The Colombian authorities have recently restructured the USF approach to reduce the burden placed on operators. They have structured it to be financially autonomous, and money for projects is granted in a highly transparent manner via a public bidding process open to all interested parties. The research reinforces the fact that market-based solutions have shown themselves to be the most effective way in bridging the digital divide'.
The liberalisation of markets, private sector investment and mobile operator innovation has opened up telecommunications services to a significant proportion of the global population. With the number of mobile subscribers standing at 3.2 billion, nearly half of the people in the world now use mobile communications1. It is expected that a further 700 million subscribers will be added by 2017 and the 4 billion-subscriber milestone will be reached in 2018.
Phillips concluded, The GSMA calls on individual governments to implement an immediate moratorium on the collection of more money for universal service funds and to launch a re-think of their future role.
The report can be found at: www.gsma.com/publicpolicy/tax/research-and-resources.
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
20/06/2026
New add-on creates doubles & vocal stacks
IK Multimedia's latest ReSing add-on kits the innovative software out with the ability to automatically genera...
20/06/2026
What exactly is Apogee Control V3?
Control V3 is a new mixer application that controls Apogee interfaces. The new hit feature is that V3 finally allows for...
19/06/2026
Split compound eases operational challenges at Shinnecock Hills Golf Club...
19/06/2026
North Carolina, Oklahoma meet in the best-of-three Finals as ESPN leans into spe...
19/06/2026
Company launch comprehensive mix-comparison tool
The Him DSP are a plug-in company founded by The Him, an EDM DJ and producer who has amassed over half a bi...
19/06/2026
Major Sampler upgrades introduced
The latest version of Bitwig's DAW software has just entered public beta testing, and is available now for all users w...
19/06/2026
Four times the power of their predecessors
Akai Pro have just introduced upgraded versions of two of their popular standalone MPC systems, kitting them out ...
19/06/2026
Data from May shows seasonal outdoor trends triggers lower viewing
Warsaw, Pola...
19/06/2026
Buttons is best control system in the rAVe Best of Infocomm Awards 2026...
19/06/2026
Mavis Studio Makes iPad Production More Powerful
Brie Clayton June 19, 2026
0 Comments
InfoComm update brings new NDI Preview, PTZ control, USB audio ...
19/06/2026
Immersive Studio Metaverse Stage Tackles Post with Blackmagic Design
Brie Clayton June 19, 2026
0 Comments
New narrative projects rely on DaVinci Reso...
19/06/2026
How to Run the Original 1993 After Effects
Graham Quince June 19, 2026
0 Comments
How to the original After Effects v1 in an emulator, and you don'...
19/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
19/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
19/06/2026
SMPTE , the home of media professionals, technologists and engineers, has announced that its entire Standards catalog is now freely available to the global medi...
19/06/2026
nsign, the digital signage SaaS platform built around its core principle of Simplify Complexity, has announced a partnership with BrightSign , expanding the dep...
19/06/2026
Visual Productions announces the availability of its new RdmRelay2 at InfoComm 2026 (ACT Entertainment, Booth N6813). A networked, four-channel DMX relay, it is...
19/06/2026
Adobe Unveils Major Expansion of Creative Agent Across Firefly and Creative Clou...
19/06/2026
Immersive Studio Metaverse Stage Innovates Storytelling with URSA Cine Immersive
Brie Clayton June 18, 2026
0 Comments
Two new narrative short films c...
19/06/2026
Friday 19 June 2026
How to watch the 2026/27 Premier League season on Sky Sports
Which matches are Sky Sports showing on the 2026/27 Premier League opening we...
19/06/2026
Catch up on the latest developments across Baselight and Daylight v7, Nara and FilmLight API Wednesday 8 July, 5pm onwards
Firehouse: DCTV, 87 Lafayette St, Ne...
19/06/2026
Lab studies explain how new cancer drug works as it enters patient testing Immunologists at Scripps Research show how a new, experimental drug revives immune ce...
18/06/2026
Ratings Roundup is a rundown of recent rating news and is derived from press rel...
18/06/2026
PTZOptics has unveiled new Visual Reasoning demonstrations at InfoComm 2026 (Boo...
18/06/2026
IBC2026 will take place at the RAI Amsterdam from September 11-14, bringing toge...
18/06/2026
InfoComm 2026 held its first-ever Media Day on June 17, providing journalists an...
18/06/2026
FOR-A America has announced a Trade Agreements Act (TAA)-compliant LED display solution combining Alfalite's Litepix LED displays and Brompton Technology...
18/06/2026
In-venue and creative video staffers at the professional and collegiate level have one major thing in common: the intensity and attention to detail ramps up dur...
18/06/2026
The International Federation of American Football (IFAF) and TMRW Sports have an...
18/06/2026
AJA Video Systems has unveiled Io Xpand, a Thunderbolt 5-enabled PCIe expansion ...
18/06/2026
ESPN has announced its coverage plans for the 30th anniversary of the WNBA's...
18/06/2026
FOX Sports' Big Noon Kickoff will broadcast live from Wembley Stadium in Lon...
18/06/2026
InfoComm 2026 opened on Wednesday at the Las Vegas Convention Center, bringing t...
18/06/2026
As media companies look to deliver more live, VOD, and snackable sports content ...
18/06/2026
Top L-R: Take Me Home, The Lake
Bottom L-R: TheyDream, Union County
Free Summer Screening Series Announced
Screenings for the Local Utah Community at...
18/06/2026
Improvements & new IR content
iamReverb Audio have just launched a free update that kits their convolution reverb plug-in out with some new features and int...
18/06/2026
Modelling suite gains improved captures, iOS support & more
Two notes Audio Engineering have just announced the launch of Genome 2.0, a significant update t...
18/06/2026
New AI assistance feature, video overhaul & more
VSL have just announced the launch of Vienna Ensemble Pro 8.1 and 8.1V, a pair of major updates to their ev...
18/06/2026
The average daily TV screen time in May was 3 hours and 36 minutes, marking a clear decrease of 15 minutes compared to April. This trend proved to be much stron...
18/06/2026
Integration embeds Gracenote content intelligence, including contextual segments...
18/06/2026
AJA Video Systems unveiled Io Xpand, a high-performance Thunderbolt 5-enabled PCIe expansion chassis for AJA KONA and Corvid video and audio I/O cards. As dema...
18/06/2026
New NVRT-driven workflow enables on-demand traffic mirroring and guided troubleshooting for AV teams, integrators, and support organizations ahead of InfoComm 2...
18/06/2026
At InfoComm 2026, Mavis announced a major update to Mavis Studio, its live production app for the iPad, with new features designed to make professional AV produ...
18/06/2026
Transaction Positions Harmonic as a Pure-Play Broadband Company
Harmonic Inc. (NASDAQ: HLIT), the worldwide leader in virtualized broadband solutions, today a...
18/06/2026
ACT Entertainment and NETGEAR have announced a strategic partnership that establishes verified interoperability between NETGEAR Switches and key technologies fr...
18/06/2026
IBC2026 is set to bring the global media, entertainment and technology community together at the RAI Amsterdam from 11 14 September, enabling industry players f...