The government said on Friday that all existing multiple access radio relay systems would be replaced with wireless in local loop technology by the next financial year.
This was decided at a meeting of the consultative committee attached to the ministry of communications and IT, where Communications Minister Arun Shourie said that as much as Rs 300 crore (Rs 3 billion) was released last year from Universal Service Obligation fund, according to an official press release issued in New Delhi.
As a result, 43,000 telephones with MARR system had been replaced and the remaining would be replaced by the next financial year.
The minister said that setting up of the USO fund would greatly strengthen the government's efforts in covering all the villages in the country through rural telephones and meeting social obligations.
"It is expected that during the Tenth Plan period, about Rs 10,000 crore (Rs 100 billion) would be accrued," the release said.
During the meeting, which focused on rural telephony, some members expressed concern over the non-functioning of WLL phones in rural areas because of lack of adequate power supply in some states.
They felt that remote areas, in particular the desert and hilly areas, may be given special consideration while formulating the policy for setting up telephone exchanges as well as infrastructure facilities.
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