"If the fund were left with the industry, it would be spent on infrastructure investment that has a positive economic impact," Solomon told IANS in an e-mail from London, based on the findings of a recent report on India's fund.

In fact, the report prepared by the association, which is a powerful lobby and public policy advocacy, also suggests that the Indian fund has had a net negative impact on the country's telecom and information and communications technology sectors.

"One of the main reasons why such funds remain unused in many countries is that a competitive industry like telecom moves at a pace which these funds cannot keep up with," said Solomon.

"In a matter of a few years, the mobile industry in India has built huge infrastructure, connecting hundreds of millions of people. Why even consider a USOF (Universal Service Obligation Fund) now? If the private sector is appropriately incentivized it will always outperform the public sector."

Not that N. Ravi Shanker, the administrator of the fund under the Department of Telecom and chairman and managing director of Bharat Broadband Nigam Ltd (BBNL) disagrees. "But this is just half the story," he told IANS.

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