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Started by : Sonal Singh, Project Manager, Nortel Networks   10 28 2009 14:02:21 +0000
Industry : Telecom/ISPFunctional Area : Growth(Strategy & Execution)
Activity:  56 views;  last activity : 07 06 2010 20:18:09 +0000

Dear friends, Rural sector has always been untouched by the telecom operators. In recent news, Nokia has set a target to tap a billion customers in rural India.

For a telecom handset player in what is one of the fastest growing sectors not only in India but the planet, the stakes to be among the first ones to hoist a flag in the rural markets is high.

Almost 2 bn people across India, China and Africa reside in rural areas and out of that close to a billion reside in India alone. So it’s not just the FMCG companies or the telecom service providers who are salivating over the potential but even a handphone manufacturers who are looking to entrench itself in the rural markets here. And it’s doing so by taking a different route, albeit one which forays into a turf where the service providers hold fort — services.
Bundling helps any handset player to create extra ‘value’ to lure the entry level consumers . But how does one create brand leadership for oneself in such a scenario without depending on others ?

 
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1 Empowering Rural inhabitants through NLT
2 Sharing systems and networks by segregating Operation and Service provision

Empowering Rural inhabitants through NLT

idea posted by Sonal Singh Project Manager, Nortel Networks

NLT, is in many ways a lab which can enable them to replicate the model in other potential rural markets across the globe. The thrust on rural markets in India comes even as the mobile density is around 40% with 450 million users thus providing ample scope for full throttle growth.

At the end even economic progress is more a means to achieve ‘stature’ than statuses in the community. Therefore progress achieved through more knowledge is a definitive way acquire social ‘stature’

With their reach and ITC’s e-Choupal’s network, they can empowering farmers across states with latest and relevant information. The key is to create a base through constant engagement. Once it is achieved, the services can be bundled on all handsets sold in rural market.


Telecom operators should take NLT across six more markets globally. It should be seen whether the tools open the door to the rural markets for telecom operators in the time to come.

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Nokia has always been highly innovative, and it is proved again! Empowering rural India and forging suitable partnerships is a win-win situation for both!!

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Sharing systems and networks by segregating Operation and Service provision

idea posted by P. Abraham Paul MD FCOMNET

High CAPEX / OPEX and low ARPU are the challeges in Rural telecom business.

High CAPEX & OPEX can be overcome by segregating Technology (Systems & Networks)  and Service provision (Business) so that one or two common Systems & Network could be shared by a dozen Service Providers.

Low ARPU will be overcome by high potential of very large customer volume in the rural areas.

Those who are interested may please read my posting on "How to Give Impetus to Rural Telecom" in "Telecom & IT community".

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