The government today approved the amendment of the Indian Telegraph Act to include mobile telecom services in the universal services obligation (USO) fund.

The move will help cellular players explore the rural markets where tele-density is extremely low.

A bill to amend the act of 1885 is expected to be tabled in the Parliament session beginning tomorrow, information and broadcasting minister Priya Ranjan Dasmunshi told reporters.

The amendment will widen the scope of the USO fund, meant for rural telephony, to cover cellular services, Munshi said. At present, the fund could be utilised by basic operators only. As much as Rs 1,500 crore is earmarked under it for 2006-07.

The government today gave approval for the infusion of additional equity capital up to Rs 1,500 crore in Teletech Investments (India) Ltd for making downstream investments in Indian companies.

The cabinet has permitted additional equity in Teletech Investments to Essal Metal Holdings, Essar Logistics Holdings and Essar Power Holdings. The investment by Teletech Investments will be under the automatic route of FDI in Indian companies, he said.

(www.telegraphindia.com)