The scope of this Agreement aims at provision of broadband connections to the rural and remote areas of the country through the existing wire line network of BSNL. The effective date of the Agreement is 20th January 2009. The Agreement shall remain valid for eight years from the effective date. From each exchange a maximum of 31 individual/govt. institutional connections and one kiosk shall be subsidised by USOF. For individual/govt. institutional connections, in addition to subsidy for connectivity which shall be paid as FLS and EQA, subsidy for CPE and Computing device shall also be payable.
One connection for every exchange is to be given on preferential basis to Women's SHGs (Circular).
All individual/govt. institutional connections shall be provided with CPEs. However, for Computer/Computing device the subscriber shall have an option to have the broadband connection without computer/computing device also. Subsidy support for computer/computing device shall be restricted to 31 connections per exchange. USP shall offer two special USOF Subsidized tariff plans of Rs. 99/- and Rs. 150/- per month throughout the validity period of the Agreement.
In addition to these two packages, BSNL will be free to provide other tariff packages as well (Circulated by USOF HQ). However the USOF Tariff plans shall be made available by BSNL through out the validity of the Agreement.
Prescribed Tariff Packages as per Agreement must be offered.
Also the USP shall not charge tariffs higher than the tariff as per TRAI orders/Regulations/Directions issued with regard to such service in rural areas from time to time from the subscribers or the tariff charges by the USP for this type/similar type of service in urban areas whichever be lower.
For individual/govt. institutional connections that remain faulty for more than 7 days in a quarter, the USP shall provide rebate against the charges for the connections as per TRAI regulations. In case no rebate is allowed by the USP subsidy shall be deducted for the full quarter in respect of such connections. No subsidy shall be disbursed for the connections that remain faulty for 45 days or more during the quarter.
For kiosks remaining faulty for more than 7 days and less than 45 days in a quarter, pro rata EQA subsidy shall be deducted for the total number of days the kiosk remains faulty. No EQA subsidy shall be payable for faults of 45 days of more in a quarter.
The connections/kiosks that are closed permanently shall be eligible to receive EQA subsidy from the date of installation till the date on which they are closed.
Subsidy for a quarter shall be paid after making adjustments, if any, for the payments made ini the previous quarters.
Final adjustments in respect subsidy disbursed (excess/short) during a year, if any, shall be made in the following year based on the quarterly statements duly certified by the auditors of the USP. In case the USP is found to have claimed and received in excess of 10% of the subsidy due, the entire amount in excess of 10% shall be recovered along with interest from the date of disbursement at the PLR of SBI prevalent on the day of disbursement.