Mobile telephony has grown significantly in rural India, where 70% of the population lives. The rural market now represents the largest opportunity for growth, as urban growth rates have declined. Key factors fueling rural growth include the availability of inexpensive handsets, lower tariffs, and mobile operators sharing infrastructure to more easily expand to rural areas. However, challenges remain in profitably serving rural customers due to poor infrastructure, low average revenues per user, and the costs associated with distributing to new, first-time users in remote areas.

1. Mobile Telephony In Rural India
Sunil Vakayil ,Dr.K. S. Thakur,
Dr.Peyush Kant Sharma

2. •A Brief Introduction
•Usage Trends In Rural India
•The Next Big Arena – Rural India
•Present Trends
•Challenges Faced In Rural Markets
•Conclusion
Flow Of The Presentation

3. •A Brief Introduction
70 % of India, lives in Rural Area
Roads & other infrastructure are weak in Rural India
Tele density in India has grown from 7 %to 72% (2004 to 2011)
Mobiles now play a pivotal role in development of rural areas
Mobile Telephony has grown even in a recessionary economy

4. •Rural India Then
•Rural India Now

5. •Composition Of Telephone Subscribers
Fastest Growing Segment & Largest Opportunity : Rural Wireless

6. •Year Wise Tele Density Trends

7. •Present Trends
India is the fastest growing mobile phone markets in the world
Growth is being triggered from rural markets
Availability of inexpensive handsets
Growth Reason: lack of infrastructure & landlines in rural area
Operators have reduced the pricing of calls

8. •The Next Big Arena – Rural India
Growth rates in urban areas have seen a declining trend
Availability of less expensive handsets fuel growth
Availability of handsets which could deliver local content
Low entry cost to get a mobile connection
Lower tariffs and low monthly fees
Mobile operators share infra; hence it is easier to go to rural mkts

9. •Usage Trends In Rural India
Prime Usage : Voice & On PrePaid
Rural Customers do not mind changing mobile numbers
Increasing usage of Value added services ::Signs of maturing mkt
Customers use SMS in local language / combinationn of languages
Average spend by customers per month is approx Rs 75/-
Only 7 % Rural Customers use internet on the handsets

10. Poor power supply in rural areas
•Challenges Faced In Rural Markets
New Rural subscribers would be first time mobile users
Viable Network Roll out in rural areas
Profitable Channel of Distribution
Low ARPU subscribers may build reverse pressure on operators
Operating margins low as cost of distribution would be higher

11. •Conclusion
All stake holders see the opportunity for growth in Rural Areas ;
But the existing challenges in terms of Infra structure , geography
etc , have impaired initial growth in this field
Dept of telecommunications is playing a vital role in linking up all
stake holders so that desired 50% teledensity in rural areas can be
achieved by 2012 Dec .

12. Thank You