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Maximizing Socio-Economic Benefits through USF Utilization: Lessons from Pakistan

Explore the role of Universal Service Funds (USF) in achieving long-term socio-economic benefits by subsidizing prices of merit goods. Learn about the global scenario, funding, utilization, and administration of USFs, with a focus on Pakistan as a successful case study. Discover key strategies, enablers, challenges, and recommendations for effective USF implementation. Join the discussion on how USFs can bridge the digital divide and contribute to national development goals.

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Maximizing Socio-Economic Benefits through USF Utilization: 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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