The Universal Service Support Policy came into effect from 1.4.2002. The Indian Telegraph (Amendment) Act 2003 giving statutory status to the Universal Service Obligation Fund (USOF) was passed by both Houses of Parliament in December 2003. The Universal Service Obligation Fund is headed by the Administrator, USF. The Administrator is empowered to formulate procedures for implementation of the USO and disbursement of funds from the USOF. The Universal Service Levy is presently 5% of the Adjusted Gross Revenue (AGR) of all telecom service providers except the pure value added service providers like Internet, Voice Mail, E-Mail service providers etc.
CCAs are DMA- Designated Monitoring Agency by USOF. As DMA, CCA are carrying out the function of timely disbursement of subsidy in accordance with the terms and conditions of the respective USOF Agreement. Physical verification of Schemes, carrying out post implementation review of USOF projects / Schemes and maintaining records and returns of claims are mandated functions for CCA.