10 Program Funding Funding of the rural telecommunications program shall cover the cost of implementation, operations and maintenance. It is recommended that a Rural Telecommunications Development Fund (RTDF) be created which will be funded through public and private partnership arrangements. The overriding consideration is to ensure sustainability and to see to it that the mechanisms adopted is seen to be promoting contributory and distributive fairness. With telecommunications playing a key role in social and economic development the levy mechanism shall be designed such that it takes into consideration all stakeholder interests in order to gain widespread support. This funding approach shall provide immediate relief for the provision of telecommunications service to the rural areas in the short term. The funding mechanism shall ensure the provision of access whilst at the same time ensuring sustainability. Funding shall meet the requirements for transparency, fairness and proportionality as well as allowing flexibility to meet future requirements. The long term funding of the rural telecommunications program shall be informed by the Universal Access and Service Policy. 10.1 Funding of RTDF Funding of RTDF shall come from direct government subsidy, operators levy and funds from the BTA as reported from their financial statements. Initial funds for the RTDF shall come from a direct government subsidy and shall be used for the capital and operational expenditure associated with rolling out the infrastructure. Other sources of funding shall augment the continued direct government subsidy to support the operations and maintenance as required. Payment of the operator levy shall be applicable to all licensed public telecommunication operators. Private network operators as licensed by the BTA are excluded as their network is not public and they do not derive income from their network. The licensed operators include: i) National telecommunications operators These include all licensed telecommunication operators operating a public network. Rural Telecommunications Strategy 26 October 2006 25