Mobile strategies for rural India
As mobile services in Indian urban markets are reaching saturation, rural markets are becoming an important frontier for industry growth. However, due to low ARPU and the higher cost of providing services in rural areas, operators face the challenging task of serving these areas profitably. This report discusses the opportunities and challenges of rural markets, and effective strategies to serve these markets successfully.
EXECUTIVE SUMMARY
IN A NUTSHELL
KEY MESSAGES
LOW TELEDENSITY AND STRONG SOCIO-ECONOMIC DEVELOPMENT
THE ADDRESSABLE MARKET IS NOT HUGE IN THE SHORT TO MEDIUM TERM
THERE ARE STRUCTURAL CHALLENGES IN DELIVERING COMMUNICATIONS SERVICES
PROFITABILITY OF THE ADDRESSABLE MARKET IS KEY
A COMPREHENSIVE RURAL STRATEGY FRAMEWORK IS REQUIRED
OPERATORS ARE TAKING VARIOUS STEPS TO ADDRESS THE RURAL MARKET
OVUM VIEW
FOCUS ON MARKET SHARE, TOTAL REVENUES AND PROFITABILITY
EXPLORE VALUE-ADDED SERVICES BEYOND AGRICULTURE
EXPLORE OPPORTUNITIES FROM NON-TELECOMS PLAYERS AND THE GOVERNMENT
LEVERAGE THE DEPLOYED INFRASTRUCTURE FOR NON-TELECOMS USAGE
RURAL INDIA: OPPORTUNITIES AND CHALLENGES
HUGE POPULATION BASE AND LOW LEVELS OF TELEDENSITY
CONDUCIVE SOCIO-ECONOMIC GROWTH DRIVERS
HIGH ASPIRATIONAL AND UTILITY VALUE OF A MOBILE PHONE
ATTENTION FROM NON-MARKET AND NON-TELECOMS PLAYERS
POOR STATE OF PUBLIC INFRASTRUCTURE
LOW LITERACY AND MEDIA PENETRATION
INEFFECTIVE PUBLIC POLICIES AND REGULATORY SUPPORT
A CONFUSING MAZE OF LOCAL GOVERNING BODIES
BALANCING FIRST MOVER ADVANTAGE AND FINANCIAL RISKS
INDIAN RURAL MARKET SEGMENTATION
INFLATED SHORT- TO MEDIUM-TERM EXPECTATIONS
RURAL MARKET SEGMENTATION
SOCIO-ECONOMIC SEGMENTATION
AGE-BASED SEGMENTATION
GEOGRAPHY-BASED SEGMENTATION
OCCUPATION-BASED SEGMENTATION
RURAL STRATEGIES FOR SUCCESS
FRAMEWORK FOR A SUCCESSFUL RURAL MARKET STRATEGY
PRODUCTS AND SERVICES INNOVATION
AVAILABILITY
AFFORDABILITY
USABILITY
MOTIVATION AND CAPABILITIES
OPERATIONAL EXCELLENCE
ENERGY CONSUMPTION
ACTIVE INFRASTRUCTURE CAPEX AND OPEX
PASSIVE INFRASTRUCTURE CAPEX AND OPEX
SALES, DISTRIBUTION, BILLING AND CUSTOMER-CARE EXPENSES
ENGAGE GOVERNMENT BODIES
ENABLE GOVERNMENT INITIATIVES AND CO-ACQUIRE CUSTOMERS
EFFECT CONDUCIVE POLICY CHANGES
LEVERAGE GOVERNMENT RESOURCES AND INFRASTRUCTURE
FACILITATE WORKING WITH LOCAL GOVERNMENT BODIES
ENGAGE NON-PROFIT ORGANISATIONS
ENABLE SOCIAL INITIATIVES AND CO-ACQUIRE CUSTOMERS
CAPITALISE ON LOCAL KNOWLEDGE AND GOODWILL
LEVERAGE MICRO-FINANCING EFFORTS TO DRIVE ADOPTION
PARTNER WITH NON-TELECOMS COMPANIES
GENERATE NEW REVENUE OPPORTUNITIES
ENHANCE UNDERSTANDING OF RURAL NEEDS
LEVERAGE EXISTING SALES AND DISTRIBUTION NETWORKS
DEVELOP UNCONVENTIONAL BUSINESS MODELS
SHARE CAPEX AND OPEX
EMPLOY LOCAL ENTREPRENEURS
CAPITALISE ON LOCAL KNOWLEDGE AND GOODWILL
REDUCE SALES, DISTRIBUTION, BILLING AND CUSTOMER-CARE COSTS
ENHANCE CUSTOMER EXPERIENCE
INDIAN RURAL STRATEGIES: CASE STUDIES
BHARTI AIRTEL
COVERAGE PRIORITISATION
JOINT VENTURE WITH INDIAN FARMERS FERTILISER COOPERATIVE
AIRTEL SERVICE CENTRES
COMMUNICATING WITH RURAL CUSTOMERS
MICRO-FINANCING INITIATIVE
TATA TELESERVICES
SAHAYAK SERVICE
MULTI-FACETED DISTRIBUTION STRATEGY
STRATEGIC PARTNERSHIPS
RELIANCE COMMUNICATIONS
BHARATNET
GRAMEEN VAS
MACHINE-TO-MACHINE APPLICATIONS
PARTNERSHIP WITH KRISHAK BHARTI
ERICSSON
EXPANDER SOLUTION
DYNAMIC DISCOUNT SOLUTION
NOKIA SIEMENS NETWORKS
SMART SITE SOLUTION
BROADBAND VILLAGE INDIA
VILLAGE CONNECTION
ALCATEL-LUCENT
VILLAGENET
‘GREEN’ INITIATIVES
NOKIA LIFE TOOLS
QUALCOMM’S WIRELESS REACH INITIATIVE
IN A NUTSHELL
KEY MESSAGES
LOW TELEDENSITY AND STRONG SOCIO-ECONOMIC DEVELOPMENT
THE ADDRESSABLE MARKET IS NOT HUGE IN THE SHORT TO MEDIUM TERM
THERE ARE STRUCTURAL CHALLENGES IN DELIVERING COMMUNICATIONS SERVICES
PROFITABILITY OF THE ADDRESSABLE MARKET IS KEY
A COMPREHENSIVE RURAL STRATEGY FRAMEWORK IS REQUIRED
OPERATORS ARE TAKING VARIOUS STEPS TO ADDRESS THE RURAL MARKET
OVUM VIEW
FOCUS ON MARKET SHARE, TOTAL REVENUES AND PROFITABILITY
EXPLORE VALUE-ADDED SERVICES BEYOND AGRICULTURE
EXPLORE OPPORTUNITIES FROM NON-TELECOMS PLAYERS AND THE GOVERNMENT
LEVERAGE THE DEPLOYED INFRASTRUCTURE FOR NON-TELECOMS USAGE
RURAL INDIA: OPPORTUNITIES AND CHALLENGES
HUGE POPULATION BASE AND LOW LEVELS OF TELEDENSITY
CONDUCIVE SOCIO-ECONOMIC GROWTH DRIVERS
HIGH ASPIRATIONAL AND UTILITY VALUE OF A MOBILE PHONE
ATTENTION FROM NON-MARKET AND NON-TELECOMS PLAYERS
POOR STATE OF PUBLIC INFRASTRUCTURE
LOW LITERACY AND MEDIA PENETRATION
INEFFECTIVE PUBLIC POLICIES AND REGULATORY SUPPORT
A CONFUSING MAZE OF LOCAL GOVERNING BODIES
BALANCING FIRST MOVER ADVANTAGE AND FINANCIAL RISKS
INDIAN RURAL MARKET SEGMENTATION
INFLATED SHORT- TO MEDIUM-TERM EXPECTATIONS
RURAL MARKET SEGMENTATION
SOCIO-ECONOMIC SEGMENTATION
AGE-BASED SEGMENTATION
GEOGRAPHY-BASED SEGMENTATION
OCCUPATION-BASED SEGMENTATION
RURAL STRATEGIES FOR SUCCESS
FRAMEWORK FOR A SUCCESSFUL RURAL MARKET STRATEGY
PRODUCTS AND SERVICES INNOVATION
AVAILABILITY
AFFORDABILITY
USABILITY
MOTIVATION AND CAPABILITIES
OPERATIONAL EXCELLENCE
ENERGY CONSUMPTION
ACTIVE INFRASTRUCTURE CAPEX AND OPEX
PASSIVE INFRASTRUCTURE CAPEX AND OPEX
SALES, DISTRIBUTION, BILLING AND CUSTOMER-CARE EXPENSES
ENGAGE GOVERNMENT BODIES
ENABLE GOVERNMENT INITIATIVES AND CO-ACQUIRE CUSTOMERS
EFFECT CONDUCIVE POLICY CHANGES
LEVERAGE GOVERNMENT RESOURCES AND INFRASTRUCTURE
FACILITATE WORKING WITH LOCAL GOVERNMENT BODIES
ENGAGE NON-PROFIT ORGANISATIONS
ENABLE SOCIAL INITIATIVES AND CO-ACQUIRE CUSTOMERS
CAPITALISE ON LOCAL KNOWLEDGE AND GOODWILL
LEVERAGE MICRO-FINANCING EFFORTS TO DRIVE ADOPTION
PARTNER WITH NON-TELECOMS COMPANIES
GENERATE NEW REVENUE OPPORTUNITIES
ENHANCE UNDERSTANDING OF RURAL NEEDS
LEVERAGE EXISTING SALES AND DISTRIBUTION NETWORKS
DEVELOP UNCONVENTIONAL BUSINESS MODELS
SHARE CAPEX AND OPEX
EMPLOY LOCAL ENTREPRENEURS
CAPITALISE ON LOCAL KNOWLEDGE AND GOODWILL
REDUCE SALES, DISTRIBUTION, BILLING AND CUSTOMER-CARE COSTS
ENHANCE CUSTOMER EXPERIENCE
INDIAN RURAL STRATEGIES: CASE STUDIES
BHARTI AIRTEL
COVERAGE PRIORITISATION
JOINT VENTURE WITH INDIAN FARMERS FERTILISER COOPERATIVE
AIRTEL SERVICE CENTRES
COMMUNICATING WITH RURAL CUSTOMERS
MICRO-FINANCING INITIATIVE
TATA TELESERVICES
SAHAYAK SERVICE
MULTI-FACETED DISTRIBUTION STRATEGY
STRATEGIC PARTNERSHIPS
RELIANCE COMMUNICATIONS
BHARATNET
GRAMEEN VAS
MACHINE-TO-MACHINE APPLICATIONS
PARTNERSHIP WITH KRISHAK BHARTI
ERICSSON
EXPANDER SOLUTION
DYNAMIC DISCOUNT SOLUTION
NOKIA SIEMENS NETWORKS
SMART SITE SOLUTION
BROADBAND VILLAGE INDIA
VILLAGE CONNECTION
ALCATEL-LUCENT
VILLAGENET
‘GREEN’ INITIATIVES
NOKIA LIFE TOOLS
QUALCOMM’S WIRELESS REACH INITIATIVE
LIST OF TABLES
Table 1: Socio-economic segmentation of the Indian rural market
Table 1: Socio-economic segmentation of the Indian rural market
LIST OF FIGURES
Figure 1: State of electricity infrastructure in India
Figure 2: Socio-economic pyramid of rural India
Figure 3: Age-based segmentation of rural India
Figure 4: Indian rural population by telecoms circles
Figure 5: Distribution of Indian villages by village population
Figure 6: Shifting trends in male rural employment
Figure 7: Framework for a successful rural market strategy
Figure 1: State of electricity infrastructure in India
Figure 2: Socio-economic pyramid of rural India
Figure 3: Age-based segmentation of rural India
Figure 4: Indian rural population by telecoms circles
Figure 5: Distribution of Indian villages by village population
Figure 6: Shifting trends in male rural employment
Figure 7: Framework for a successful rural market strategy
