Telephone services in India began in 1882 with 50 line manual exchanges in Kolkata. India now has the third largest telecom network globally based on fixed and mobile subscriber lines. It also has the second largest mobile network and was the fastest growing telecom market based on new subscribers added monthly. Approximately 100 million new users over the next 5-10 years are expected to come from rural areas, where the government aims to increase rural tele-density from 35% currently to 60% by 2017 and full coverage by 2020. Major challenges include lack of fiber optic infrastructure in rural areas and high device/connection costs, but corporate initiatives and technologies like WiMax aim to bridge the digital divide.

1. Telecom Services In rural India . .

2. Telecom in india Telephone services began in 1882 with 50 line manual exchanges in kolkata. India has the third largest (based on the total number of fixed/mobile subscriber lines). Second largest mobile network with the total number of 875 m at the end of April 2011. India's telecom market is now the largest in the world based on the number of new monthly subscribers added. 2

3. Mobile Network StatisticsIndia's Largest Telecom Operators as on Dec 31, 2010 (some figures from Jun 30 '11) 3

4. Market Share 4

5. Telecom in Rural In next 5-10 years approximately 100 million new users will be from rural areas – FICCI. India is aiming rural tele-density from the current 35 per cent to 60 per cent by 2017 and completely covering rural areas by 2020. By 2017, Indian Govt., wants to connect 175 million broadband users by 2017, and increasing this to 600 million by 2020. 5

6. Tele density (rural vs urban) 6

7. Rural vs Urban 7 The Urban Teledensity currently stands at 150%, rural teledensity is close to 33%. In cities, for every 2 individuals there are 3 mobile numbers – And in rural areas, there is 1 mobile number for every 3 individuals!

8. Outline of the Role of Private Sector in Rural Telecommunication Development Products to be developed which are technologically compatible. Urban and Rural Areas should both be given equal opportunities. Follow a strategy in association with the Government for the Rural Sector Telecommunication Development. Working towards the fulfillment of objectives set by the Government for the Rural Sector. 8

10. HUL Project i-Shakti (7,500 villages)

11. Project Saksham :Microsoft India project to set-up kiosks in around 200,000 villages

12. Around 200 e-government projects in various states

13. VICTERS (Virtual classroom on EDUSAT for rural schools)

14. KisanSoochnaKendras: Jai Kisan (an NGO set up to introduce rural IT technology in Uttaranchal) to put up over 3,000 kiosks

16. Corporate Initiatives.. BSNL : Low tariff plans for Rural customers. Special offers for farmers. Airtel: The company is keen to make Airtel the most admired rural brand. Reliance : Reliance Bharat Net Plan Reliance Grameen VAS (value added services) Machine to Machine Applications (M2M) Vodafone : Allure Rural customers with its Rs.700 mobile phone. 11

17. Recent affairs The distinction between local and STD calls would vanish, as the policy aims at a 'one-nation-one-licence' regime. As the market is crowded with too many players, the government would also bring an exit policy. Roaming charges will be done away with and users will be allowed to port their mobile numbers, keeping the same number, even while switching service areas. 12

18. Challenges The cost of PCs and language of operating system play a major role in spread of the Internet to rural areas. Most of Fiber-optic infrastructure hardly exists in rural area. One of the world’s most competitive markets, with 12 operators across 23 wireless ‘circles’ and 6 to 8 competing operators in each circle. Price war, Spectrum Allocation, Regulatory Charges, 13

19. Future Expectations One way to increase the penetration rate is to lay emphasis on infrastructure sharing between provider. WiMax is being promoted by the Government for affordable rural broadband connectivity. Akashtalet PC is mainly targeted to Rural masses with the help of Government subsidies. Specific Applications, cheaper access devices and improved speed are the need of the hour to make broadband a huge success and to ensure that India at par with other advanced nations. 14

20. References http://knowindia.net/telecom.html http://www.mgovworld.org/News/rural-india-will-account-for-40-of-telecom-sector-share-in-emerging-markets http://www.pr-inside.com/rural-india-offers-telecom-growth-opportunities-r811546.htm http://www.corecentre.co.in/Database/Docs/DocFiles/studypaper16dec08.pdf http://www.bbc.co.uk/news/business-13414762 http://www.frost.com/prod/servlet/market-insight-top.pag?docid=102369021 http://www.dnb.co.in/IndianTelecomIndustry/issues.asp 15

21. ..Thank you.. by John Amalan .S ArunSelvan .S 16