Telecom Technology Development Fund in India, Know More About It

Telecom Technology Development Fund

Telecom Technology Development Fund: The realm of telecommunication technology is dynamic, demanding significant funding and extensive research and development (R&D) efforts for products to transition from prototype to commercialization. Particularly in the context of high-impact deep-tech projects, substantial investment is essential to ensure the affordability and accessibility of cutting-edge services, especially in rural areas. Recognizing this strategic imperative within the telecom sector, the Government of India has introduced various financing instruments aimed at fostering indigenous technological advancements and solutions.

Overview table of Telecom Technology Development Fund

Aspect	Details
Funding Source	Universal Service Obligation Fund (USOF) allocations, starting from the financial year 2021-22.
Objective	Foster indigenous technological advancements and solutions in the telecom sector, particularly for rural and remote areas.
Eligible Entities	– Domestic companies focusing on telecom R&D and use case development. – Startups/MSMEs. – Academic institutions. – R&D institutions, Section 8 companies/societies, central and state government entities/PSUs/autonomous bodies/SPVs/limited liability partnerships focusing on telecom R&D. – Collaborative consortiums of the above entities.
Exclusions	– Companies receiving grants must maintain their status as ‘Domestic Company’ for at least two years post-project completion. – Foreign investors seeking majority stake within two years must pay back double the grant amount.
Application Process	Online submission through designated portal followed by screening, review by Technical Evaluation Committee, examination by Administrative Committee, final approval, assignment to Implementation Agency, and continuous monitoring with fund disbursement.
Documents Required	Applicant and collaborator resumes, organization/institute registration certificate, approval certificate, annual reports, TAN/PAN/CIN, applicant team resume, GANTT/PERT chart, technical architecture diagram, presentation of proposal, declaration document.
Deliverables	– Number of developed products, solutions, and use cases. – Entities receiving educational orders and obtaining full-fledged orders. – Intellectual properties generated and commercialized.
Benefits	– Bridge digital divide by developing and manufacturing state-of-the-art technologies for rural areas. – Promote technology ownership, indigenous manufacturing, and export opportunities. – Proliferate next-gen telecom tech in rural areas. – Foster culture of technology co-creation and co-innovation. – Develop telecom ecosystem through research, design, prototyping, etc. – Enhance rural-specific communication tech and value addition. – Facilitate collaboration among academia, research institutes, startups, and industry. – Bridge R&D to commercialization gap and proliferate affordable broadband and mobile services. – Drive technological and business model innovation leveraging existing infrastructure.
Pilots and Trials	USOF schemes to incorporate indigenously developed and piloted technologies across all models.

Details of Telecom Technology Development Fund

Telecommunication technology products require significantly large funding and long gestation periods for R&D and commercialization, necessitating additional efforts and resources for the products to transition from prototype to commercial grade. In the cases of high-impact deep-tech projects, there is a need for higher funding to build such products at an affordable cost, enabling state-of-the-art services for rural areas in the country. Acknowledging this strategic necessity, the Government of India offers different financing instruments under various schemes to facilitate R&D in indigenous technologies and solutions.

Apart from existing R&D funding mechanisms, the Department of Telecommunications (DoT) will utilize annual collections under the Universal Service Obligation Fund (USOF) to fund research and development of technologies, products, and services for providing telecom services in rural and remote areas. An allocation of 5% of annual collections from USOF will be earmarked for funding R&D in the Telecom sector, commencing with funds collected in the financial year 2021-22. Priority will be given to the commercialization and adoption of these telecom technologies and solutions, including through USOF schemes, aiming to introduce new technology developments in rural and remote areas through pilots and trials.

Deliverables

The impact of the Scheme will be measured in terms of:

• Number of products, solutions, and use cases developed, commercialized, and their market value.
• Number of entities receiving educational orders, culminating in obtaining full-fledged orders.
• Number of intellectual properties (IPs) generated and commercialized.

Benefits

The scheme aims to bridge the digital divide by developing and manufacturing state-of-the-art technologies for rural and remote areas. Its objectives include promoting:

• Technology ownership and indigenous manufacturing (Atmanirbhar Bharat), thereby reducing imports and opening up export opportunities.
• Proliferation of next-generation telecom technologies in rural and remote areas.
• A culture of technology co-creation and co-innovation.
• The ecosystem for research, design, prototyping, development, proof of concept testing, IPR creation, field testing, security, certification, and manufacturing of telecom products, end-to-end solutions, use cases, pilots, among others.
• Rural-specific communication technology application/use case development catering to the needs of rural masses and adding value to their day-to-day activities, both economic and social.
• Synergies among academia, research institutes, startups, and industry for capacity building and development of the telecom ecosystem.
• Bridging the gap between R&D and commercialization of products and solutions.
• Proliferation of affordable broadband and mobile services.
• Technological/business model innovation in solutions and services by utilizing existing infrastructure of USOF/DoT/GoI funded projects.
• Commercialization of developed technologies under the scheme.

USOF schemes will incorporate necessary provisions to enable the rollout of these indigenously developed and piloted technologies in all its models.

Telecom Technology Development Fund Eligibility Criteria

The following Indian entities are eligible for support from this fund:

• Domestic companies with a focus on telecom R&D and use case development.
• Startups/MSMEs.
• Academic institutions.
• R&D institutions, Section 8 companies/societies, central and state government entities/PSUs/autonomous bodies/SPVs/limited liability partnerships with a focus on telecom research and development.
• Collaborative consortiums of the above entities.

For pilots, these entities may partner with PSUs, TSPs, central/state government entities, government autonomous bodies, SPVs, etc. Minimum Technology Readiness Level (TRL) 7 is required for pilot applications.

Exclusions

• Indian companies receiving a grant under the scheme are required to retain their status as ‘Domestic Company’ for a minimum of two (2) years after project completion to ensure the percolation of publicly funded R&D benefits into the ecosystem.
• If a foreign investor or foreign Successor-in-Interest seeks to acquire a majority stake within the two-year period, the company can do so by paying twice the grant principal amount received directly or through a partnership with academia/research institution under the scheme.

Telecom Technology Development Fund Apply Online

The application process is conducted online and involves the following steps:

1. Online submission of proposal through the designated portal.
2. Screening of the applicant.
3. Review and due diligence by the Technical Evaluation Committee.
4. Review and examination by the Administrative Committee.
5. Final approval from the Competent Authority.
6. Assignment to Implementation Agency.
7. Continuous monitoring by the Implementation Agency and fund disbursement.

Documents Required

• Applicant and collaborator resumes.
• Registration certificate of the organization/institute.
• Approval certificate from the applicant’s organization/institute on their letterhead for the submission of open/pilot/chipset proposals.
• Annual reports of the last 3 years.
• TAN/PAN/CIN of primary applicant/organization.
• Applicant team resume.
• GANTT/PERT chart.
• Detailed technical architecture diagram.
• Presentation of proposal.
• Declaration document.

By fostering indigenous innovation and technological advancement in the telecommunication sector, these initiatives aim to empower rural India, bridge the digital divide, and propel the nation towards a digitally inclusive future.

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