ISLAMABAD, Jan 15: Over 600, 000 more people would benefit from telecom services as Universal Service Fund, created by Ministry of IT and funded by mobile phone companies, on Tuesday signed a contract with one of the primary cellular companies to penetrate in remote un-served areas.

The fund was established to improve telecommunications in rural areas by financing infrastructure build-up and network coverage to un-served areas which did not make business sense for the telecom companies to penetrate and set up operations.

The multi-billion USF was set up with the help of 1.5 per cent of the total revenue contributed by the cellphone operators.

The contract, awarded by USF to Mobilink at a ceremony in Islamabad is aimed at reaching un-served areas to provide telecom access to people at the bottom of the pyramid in districts like Ghotki, Sukkhur, Khairpur, Nosheroferoze and Nawabshah spread of a population of over 600,000.

After the implementation of the project, citizens of Sukkur Division would have 100 per cent access to telephone services.

These areas were un-served because cost of the operations were high due to a lack of infrastructure or scattered population.

Caretaker Federal Minister for Information Technology and Telecommunications Dr Abdullah Riar said telecommunications infrastructure and services in the rural areas could play a pivotal role for the long-term socio-economic benefit of the people.