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DoT has embarked on a Rs 80 billion plan to provide 6 million new fixed lines in rural households by 2007 with support from the USO Fund. The USO Fund administrator has invited expressions of interest from telecom operators across 20 states to bid for the largest project envisaged under the USO scheme. The bids will be opened by next month and the details finalised by March 2005.

Operators can use any technology to provide fixed telephone services in these villages. This is the first project aimed at rural households. Support from the USO Fund will comprise a onetime front-loaded subsidy and equated annual subsidy payable quarterly in arrears over a five-year period.