10
Program Funding
Funding of the rural telecommunications program shall cover the cost of
implementation, operations and maintenance. It is recommended that a Rural
Telecommunications Development Fund (RTDF) be created which will be funded
through public and private partnership arrangements. The overriding consideration
is to ensure sustainability and to see to it that the mechanisms adopted is seen to
be promoting contributory and distributive fairness. With telecommunications
playing a key role in social and economic development the levy mechanism shall
be designed such that it takes into consideration all stakeholder interests in order
to gain widespread support.
This funding approach shall provide immediate relief for the provision of
telecommunications service to the rural areas in the short term. The funding
mechanism shall ensure the provision of access whilst at the same time ensuring
sustainability. Funding shall meet the requirements for transparency, fairness and
proportionality as well as allowing flexibility to meet future requirements. The long
term funding of the rural telecommunications program shall be informed by the
Universal Access and Service Policy.
10.1
Funding of RTDF
Funding of RTDF shall come from direct government subsidy, operators
levy and funds from the BTA as reported from their financial statements.
Initial funds for the RTDF shall come from a direct government subsidy and
shall be used for the capital and operational expenditure associated with
rolling out the infrastructure. Other sources of funding shall augment the
continued direct government subsidy to support the operations and
maintenance as required.
Payment of the operator levy shall be applicable to all licensed public
telecommunication operators. Private network operators as licensed by the
BTA are excluded as their network is not public and they do not derive
income from their network. The licensed operators include:
i)
National telecommunications operators
These include all licensed telecommunication operators operating a
public network.
Rural Telecommunications Strategy
26 October 2006
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