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source:Industry News release time:2022-02-26 Article author:sznbone Popular:Prison Jamming system
The Centre's allocation of 5% of the Universal Service Obligation Fund (USOF) annually towards research and development (R&D) activities would boost IPR creation locally, and lead to design-led manufacturing in the fifth generation (5G), 5G advanced, and 6G technologies, said K Rajaraman, secretary, Department of Telecommunications (DoT).
"For the first time, we have decided to invest 5% of the USO fund in R&D in local companies and that gives access to about Rs 500 crore of funds every year for supporting local R&D. This process will help us to respond to local design and intellectual property (IP) creation and lead to more design-led manufacturing in the country going forward," the top official told ET in his first comments to the media since taking over in October.
Rajaraman said the department is looking forward to "effectively deploying" it to enable local manufacturing especially in the areas of 5G, 5G advanced and 6G, and in addition advanced optical communications, and quantum computing technologies would also deserve a boost.
On Tuesday, finance minister Nirmala Sitharaman, as part of her Union Budget 2022-23 address in the Parliament proposed to allocate 5% of annual collections under the USOF to promote R&D and commercialisation of technologies and solutions in order to enable affordable broadband and mobile services proliferation in rural and remote areas.
USOF, notified in 2004, is a Rs 55,000-crore strong corpus meant to boost digital connectivity in rural and remote areas. Telecom service providers contribute 5% of their adjusted gross revenue (AGR) annually towards the kitty.
The top official further said that the budgetary announcement was very significant since India lost out in the manufacturing segment over the last 20-25 years because it had not invested in R&D for local production.
The new fund support, according to Rajaraman, would be provided to localised manufacturing companies which require support to undertake R&D activities, and generate their own intellectual property (IP) to fuel India-centric innovation.
The industry led by homegrown telecom equipment makers have been seeking incentives to facilitate local R&D to undertake design-led manufacturing, enabling them to become competitive worldwide.
The move will provide much-needed impetus to domestic companies such as HFCL, Tejas Networks (now a Tata group company), Polycab India, Vihaan Networks Ltd (VNL) and Sterlite Technologies Ltd (STL) who can spend higher in full-fledged research and product development capabilities, and directly pit against the likes of multinationals such as Ericsson, Nokia, Huawei, Samsung, Cisco, Ciena and Juniper.
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