Indian government may give free mobile phones to BPL families: Report

Prime Minister Manmohan Singh could announce a new initiative by the government under which every poor family living below poverty line would get a free mobile phone along with free talktime. The scheme, called Har Haath Mein Mobile (a mobile in every hand), is expected to be announced on August 15 and could cost the government Rs 7,000 crore, the Times of India reports. The scheme would provide a mobile phone and Rs 200 worth of local talktime to six million families living below the poverty line.
The government is likely to fund this scheme from the Universal Social Obligation (USO) fund that aims to provide affordable telecom services to the those living in rural and remote areas. In all probability, 50 percent of the expenditure would be borne by the bidder to provide the service and the rest from the USO fund. The government is also exploring the idea of subsidizing services by bidding.