Telecom Technology Development Fund Scheme Launched by Prime Minister

The Telecom Technology Development Fund is a setup under the Universal Services Obligation Fund (USOF) of the Department of Telecom (DoT), Government of India. This has been set up to promote the ecosystem for research, design, prototype, proof of concept testing, IPR creation, field testing, security, certification and manufacturing of products, etc.

The scheme is notified for domestic companies and institutions involved in the technology design, development, and commercialization of telecommunication products and solutions to enable affordable broadband and mobile services in rural and remote areas.

The telecom technology products required large funding and time for research & development. Large funding helps them build products at affordable cost to enable state-of-the-art services for rural areas in the country.

For R&D, the different financial instruments provided to the telecom sector for R&D.

The annual collection of 5% from the Universal Service Obligation Fund (USOF) is allocated for R&D funding in the telecom sector, starting from the year 2021-22.

What is USOF?

The Universal Service Obligation Fund is a body under the Department of Technologies. USOF created a Telecom Technology Development Fund (TTDF) with the aim of finding R&D in rural areas to build and develop a telecom ecosystem. The USOF Scheme was launched on 1st October 2022.

Under the USOF, the provision of quality and affordable mobile and digital services across the rural and remote areas of the country. Also, allows non-discriminatory access to mobile and network services. Along with leading to a rapid socio-economic development with improved standard of living.

Why The TTFD Scheme is Launched?

• Promote technology ownership and Atmanirbhar Bharat.
• Reduce import and open up export opportunities.
• Increase next-generation telecom technologies in rural and remote areas.
• Develop relevant standards to meet national requirements and enable the standardization in international standards bodies.
• Promote rural-specific communication technology application/ use case development that caters for the needs of rural masses and adds value to the day-to-day activities of both economic and social.
• Reduce the gap between R&D and commercialization of products and solutions.
• Make affordable broadband and mobile services.

Types of Applications Accepting Under TTDF 2023

The Telecom Technology Development Fund (TTDF) is inviting proposals in 3 categories:

1. Open Application

Application for TTDF 2.0 to enable affordable broadband and mobile services in rural and remote areas. Proposals are invited from companies, start-ups, R&D and academic institutions, singly or in partnership. Only companies and start-ups whose headquarters are in India and Indian R&D/academic institutions are eligible to receive funding from TTDF. The entity should not be a subsidiary of a foreign company. The applications are open for the following proposals:

• Providing innovative cost-effective solutions for telecom services in rural and remote areas. 
• Proposal for conducting a pilot field trial of products that are ready for commercialisation.
• Proposals for R&D in the next generation for example 6G wireless technology.
• Proposal for improving services offered in telecom networks, import substitution, and improving the cost-effectiveness.

Submit the application online on the TTDF portal. In case the applicant wants to submit additional information in the form of pictures, videos, etc. which do not fit into the size limit. Then upload them in the public cloud, make them accessible to anyone who has the links, and include the links in the proposal at the appropriate places.

2. Application for Pilot

Application for pilot projects to establish new technological developments in the telecom sector for deployment in rural and remote areas. All the Indian entities who are eligible under the TTDF guidelines are eligible to apply for pilot testing of innovative technological and commercial solutions. 

This will help in increasing the telecom connectivity in rural areas in India. The competent authority will evaluate all the proposals and shortlist the proposals for TTDF grants. Some key points for selection are as follows:

• Uniqueness of the pilot proposal.
• Underlying Innovation.
• The current stage of the proposal should be at TRL 7. The proposal should be ready for TEC certification of Technology/Equipment during the pilot period.
• Availability of competing commercial technologies/solutions built on other technologies.
• Reasonability of the estimated cost for pilot deployment sought.
• Viability of technology for scale-up for the wholesome problem across geography or across the value chain.

3. Application for Chipset

A task force was set up to study the importance of chipsets in telecom equipment. The study recommends 5-6 chipsets for development under the chipset mission. The overall objective of this mission is to elevate domestic value addition and achieve self-reliance (Atma Nirbhar) from chips to systems, diving India’s semiconductor ecosystem with the telecom sector as a foundation.

The proposals are invited for development of the following chipsets:

• Next-generation Broadband CPE chipset
• 5G Modem + Radio chip for Dongles/IoTs/Mobile Edge/Satcom
• Multi-radio chip Micro-controller for Gateways
• xPON OLT chips for fibre broadband infra equipment
• Digital Signal Processor for Radio and Baseband Processing
• L2/L3 Packet Switch chipsets with Embedded Processor

Eligibility for Availing Incentives under the Scheme 

Only companies/ start-ups headquartered in India and Indian R&D/academic institutions are eligible to receive funding from TTDF. Indian entities who are eligible under the TTDF guidelines are eligible to apply.

The following are the Indian entities that are only eligible to get support from this fund:

• Domestic Companies with a focus on telecom R&D, and Usecase development.
• Startups/ MSMEs
• Academic institutions
• R&D institutions, Section 8 companies or societies
• Central and state government entities, PSUs, Autonomous Bodies, SPVs
• Limited Liability Partnership - with a focus on telecom research and development.
• A collaborative consortium of the above entities.
• For Pilots - The above entities may partner, inter alia, with PSUs, TSPs, Central/State Government entities, government autonomous bodies, SPVs etc.

Submit your proposal online on the TTDF portal and the last date to submit the proposals is 15 October 2023.

Conclusion

To conclude, TTDF is inviting proposals under the 3 application categories from industry, academia and government departments involved in technology design, development, and commercialization of telecommunication products and solutions. Companies, startups and other business who are eligible for the scheme can submit their proposals before the last submission date of 15 October 2023.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.