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Started by : Sonal Singh, Project Manager, Nortel Networks   06 24 2009 11:25:23 +0000
Industry : Telecom/ISPFunctional Area : Growth(Strategy & Execution)
Activity:  85 views;  last activity : 07 06 2010 20:18:09 +0000

Dear friends,

The business case for telecom in rural areas is poor because the cost of building towers and of operations is high relative to the revenue per user. Further, the towers require skilled personnel for setting them up and maintenance. Such personnel are often not available in rural areas.

I want to ask you people what you think about how telecom operators should target rural areas.

 
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1 Share systems and Netoworks
2 Lets have a brainstorming discussion
3 Wimax Wil also be a game changer in rural

Share systems and Netoworks

idea posted by Abraham Paul Senior Telecom Consultant, FCOMNET- Future Groups

Managing Telecom Business is entirely different ball game from setting up running the Technology systems and Networks.

These two can be segregated. A dozen sevice providers can easily run their telecom busines sharing a maximum of two Technology providers systems and networks.

The last mile loop is the costliest part. This multiplies again in case of the rural netork. On the other hand the ARPU in rural is much less than that in urban areas. Majority in rural need only plain vanilla products.  Unless the cost of usage is much less, the business will not build up enough volume to sustain.

The way to reduce CAPEX & OPEX is sharing of systems and Networks.

Please see my posting on 'Virtual Mobile Networks for faster growth of Rural telecom' and 'Service Provider based systems and numbering plan' posted in this space.      

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by Anshum Dua, Core Lead, Managed Services  | 09 09 2009 07:48:50 +0000

Absolutely, this seems to be the only profitable way forward. Rural expansions are particularly costly considering the rural expanse we have, dispersed population, lesser density and low literacy rates.

Active and Passive Network sharing will help to expedite the expansion process. This should help to offset lower expected ARPU from rural regions as well as reach faster.

However, another aspect which needs focus is the long term challenge of extending VAS to rural population, considering lack of education and familiarity to text/USSD based services. Guess one answers to this is "Voice recognition" which can be hugely successful in Indian context provided it can be customized for Indian usage, however it remains network resource exhaustive option. In my opinion, despite the odds against voice recognition and several failed launches; this remains a viable option for rural regions.

Cheers

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Lets have a brainstorming discussion

idea posted by Sonal Singh Project Manager, Nortel Networks

Please put your suggessions

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by balaji mahesh krishnan, group manager training  | 07 02 2009 12:13:53 +0000

very simple look at things 5 years down the line and lets think in that direction. with literacy levels increasing and industries too targeting town b and c definitely the teledensity will be on the increase as more customers will be joining in. moreover look at the opportunity for data operation(sms, internet) rather than voice.

To gain something, something needs to spent with proper training and development of existing manpower lets encash upon opportunities.Lets look at problem as an opportunity to improve and develop rather than looking at 2 steps ahead but step backward

Add your argument:

Wimax Wil also be a game changer in rural

idea posted by Sameer Goel MBA/PGDM student, Balaji Institute of Telecom & Management, Pune

Demand for VAS services  in rural areas are increasing day by day.... We can see alot of DTH going towards rural area and hence we can imagine the interest and awareness of technology in rural areas... similarly with the help of active and passive infrastructure sharing hence reducing networks implementation costs in Rural areas Wimax can also play an important part.. Last mile as explained by my colleague can be a game changer.. We can see how BSNL is launching its Wimax and even Fiber to home mostly in rural sectors...

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