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Utilization of USF: Lessons from Pakistan

Utilization of USF: Lessons from Pakistan. Rasheda Sultana Bangladesh. US&UA: Approach and definition. Why to introduce USF…. Socio-Economic benefit. Long term socio-economic benefit might make it economically efficient to subsidize prices. Merit good.

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Utilization of USF: Lessons from Pakistan

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  1. Utilization of USF: Lessons from Pakistan Rasheda Sultana Bangladesh

  2. US&UA: Approach and definition

  3. Why to introduce USF…. Socio-Economic benefit • Long term socio-economic benefit might make it economically efficient to subsidize prices Merit good • Policymakers may decide to subsidize ‘Merit goods’ to achieve a certain minimum standard of living • Political factors or regional development goals may induce government to subsidize to rural or low-income regions Development goals

  4. Broadband the next big thing of IT & Telecom revolution In percentage

  5. Digital divide: global scenario Source: ITU 2011

  6. Global USF: funding, utilization and administration • Fund source • Over 120 countries have UAS policy • 64+ countries have some form of USF • Levies on operators are main source of funding (levies ranges from <1% to 6%) • Utilization of funds • UAS programme planning and implementation too slow – overtaken by market development • No fund has been capable of distributing more than 1-2% of sector revenue • Administration of funds • Over 70% are managed either by NRA or Concerned ministry

  7. The biggest and brightest USFs

  8. What made Pakistan different STRATEGY ENABLERS 2 1 • Low tax • Manageable USF • Coordinate strategy processes • Governance model • Independent board • Diversified with equal representation from Public and Private sector 3 4 • Fund allocation • Process • Competitive • Transparent • Expertise • Possess the right set of people, capacity and expertise for implementation • Focuses on resources, processes, people etc

  9. Challenges ahead

  10. Recommendation

  11. Questions

  12. Thank You

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