The Universal Service Fund (USF) is defending its plan to spend $70 million on advertising over two years despite a plunge in revenue.
Concern was raised at Wednesday's Public Administration and Appropriations Committee (PAAC) meeting about the magnitude of spending by the USF on promotions.
It emerged that the entity's revenue has nose-dived due to a decline in voice calls.
However, Deleen Powell, Marketing and Communications Manager at the USF, said the allocated money will not only be used for advertising, but a portion will be spent on the Fund's communication and public education activities.
"A very big part of the spend is also on our corporate social responsibility activities, which sees us donating technological devices such as tablets, computers, laptops and other devices to needy persons as outlined in the Telecommunications Act," she outlined.
Ms Powell maintained that the decline in inflows to the Universal Service Fund is not unique to Jamaica.
She said the agency is looking at new ways of earning revenue by examining strategies being used in other parts of the world.