“I need to talk to my relatives in
other village but signal is very bad.
What is the use of buying a mobile?”
“My husband works in town. How do
I talk to him? Call rates are so high!!”
“What else mobile can offer except
voice calling? I have a landline to do
Aims at Young Rural mobile phone users
Research Objective & Design
Rural Telephony in Unjha, Ahmedabad.
Usage of mobile phone in village in relation to their socio-economic & cultural context.
Research Approach- Methods & Tools
In Depth Interviews
Exposure to mobile phone services
Usage patterns & features used
Value Added Services Availability & Usage
Design of Study
The study would focus on Unjha, Ahmedabad. The research is a expolatory study along with Rapid Rural Appraisal.
No. of Respondents : 7-10
Conclusion of Research
The study represents usage of mobile phones within youth/adults in rural India for :
Cheating and Socializing
Few Research Findings
Mobile has become a very powerful social and economical function.
Youth adult seeks pleasure and sexual arousal from the usage of mobile phones.
Youth are extensive consumers of VAS content like music, games and at times porn content at internet.
The Current Telecom Industry Presence in Rural India
Indian Telecom Industry in Rural Market– Basic Industry Structure *
India has more than 429.7 million subscribers and plans to reach 771 million by 2013
Wireless Subscribers are 391.76 million.
Rural Wireless Subscribers are 109.71 million –
72 percent of India’s population of 1.16 billion lives in rural areas.
40 percent of new mobile subscribers now coming from the rural areas.
Potential 70-80 million new subscribers can add over 2010-2011.
More than 10 percent already use more than three multimedia services, such as
text alerts, games, and downloads of music, ringtones and wallpapers.
1 million rural consumers use the mobile internet via their mobile phones, with
young people and businessmen being the early adopters
*Source : TRAI
Demand and Supply
1. Low Tariff rates
2. Good Connectivity
1. Network coverage
3. Cheap Value Added
2. Customer service
3. Low tariff plans
4. Easy availability
Rising purchasing power giving rise to services such as
banking, communications, insurance, education, housing, health care, utilities and entertainment.
Changing consumer habits in terms of awareness of brands and growing aspirations
Increased access to information and communication technology.
Increased government programmes to boost the rural economy. Gradual progress due to
Government initiatives and NGO partnerships with Private players.
200 million out of 700 million rural population in India are engaged in agricultural and non
agricultural activities, and have decent per capita income.( Associated Chambers of Commerce
and Industry of India (ASSOCHAM).
SWOT Analysis: Indian Telecom Industry in Rural Market
Huge Customer potential - Rural Tele-density
High Growth Rate. CARG of telecom sector : 19% 2.
Allowed FDI limit ranging from 74% to 100%.
High return on Investment.
Liberalization efforts by Govt.
Lower capital expenditure
The Indian telecom market-high density area more population per tower- lower capital
Poor telecommunication infrastructure. E.g :
Large No. of call drops
Most competitive market in India.
Late Adaptors of technology. Eg 3G Technology
Under-penetrated rural markets -- at about 15%
70% of all new subscribers will come from rural
More scope in content related services, since
the Indian rural consumer is influenced by local
Value added Services (VAS).Mobile banking,
Mobile Ticketing,3G Telecom services etc.
Lower Income & Less tech savvy user
Declining ARPU (average Revenue per user)
E.g. price wars like per-second billing which is
deflating revenues and making sure the survival
of the fittest.
Partiality on the part of the Govt.
E.g. Allowing 3G service in a PSU (MTNL,BSNL)
before auctioning to Private sector
Current Industry Scenario : Rural Uprising *
Rural mobile users spend about a tenth of their
income on telecom.
1 million rural users use MOBILE INTERNET.
10% of total rural markets already use more
than 3 multimedia services.
Huge Potential to add up to 70-80 million
subscribers in 2010-2011.
Today, only 28% of the subscriber base is
contributed by the rural segment."
Major Players in Telecom Industry : Eyeing Rural Market
Currently India has about 17 active mobile
phone service providers
If companies need to build a
success story in rural markets
they need to ground themselves firmly in
rural perception, values & tradition
Need to gain Trust & confidence of rural
Bharti Airtel, Reliance Communications and
Vodofone Essar have tapped most of the
Spice Telecom is a new entrant, which has
launched local market rates for Karnataka
to connect with its customers
Competitive Market Analysis
Vodafone Essar and Samsung ‘s “solar powered mobile phones” to address the problems of
recharging mobile phones in rural areas where electricity supply is erratic and unreliable.
Spice telecom will launch local market rates for commodities across Karnataka to connect with its
rural customers. It already has a footprint and provides localized content in Punjabi and Kannada.
Airtel’s rural startup package offers
– Its customers a Motorola handset for Rs.1599.
– Recharge cards come in a minimum denomination of Rs. 10, which could also target the daily
– It plans to expand its network by another 5000 through cigarette and paan sellers.
– Partnered with Nokia to develop handsets that provide menu and SMS features in Kannada
language priced at 1200 for the monochrome model and 1560 for the color handset.
– Plan entitles the consumer with lifetime validity and local calling at Re. 1 per minute and STD
calling at Rs. 1.50 perminute. The handset is additionally built with Kannada portal where they
can access information in Kannada and enjoy entertainment services like songs, jokes, dialogues
and Caller Ring Back Tunes (CRBT).
– Partnered with Indian Farmers Fertilizer Cooperation Ltd. (IFFCO) and together launched a
company called IFFCO Kisan Sanchar Limited (IKSL) specially designed for farmers of IFFCO
Reuters Market Light (RML) a mobile service initiative . It offers the much-needed relevant market
information about prices, weather, etc to the farmers through the mobile phone network.
Value Added Services
Value-added services for wireless subscribers in
India’s rural areas can generate a revenue of
$835 million for regional service providers in
Market for value added services is as high as 70
% of households in rural India
Reuters Market Light (RML)
IFFCO Kisan Sanchar Limited
Soochna Se Samadhan
Mandi on Mobile service
Fisher Friend project
* Source : Analysys ( News- Alert ) Mason