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Mobile strategies for rural India - Aarkstore EnterpriseAs 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. Table of Contents : 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 (News - Alert) 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 (News - Alert) Coverage prioritisation Joint venture with Indian Farmers Fertiliser Cooperative Airtel Service Centres Communicating with rural customers Micro-financing initiative Tata Teleservices (News - Alert) Sahayak service Multi-faceted distribution strategy Strategic partnerships Reliance Communications BharatNet Grameen VAS Machine-to-machine applications Partnership with Krishak Bharti Ericsson (News - Alert) Expander solution Dynamic discount solution Nokia Siemens Networks Smart Site solution Broadband Village India Village Connection Alcatel-Lucent VillageNet ‘Green’ initiatives Nokia (News - Alert) Life Tools Qualcomm’s Wireless Reach initiative List of Tables 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 For more information, please visit : http://www.aarkstore.com/reports/Mobile-strategies-for-rural-India-32320.html As a community-building service, TMCnet allows user submitted content which is not always proofed by TMCnet editors. If you feel this entry is of inferior quality or wish to report it for some reason, please forward the URL to "webedit [AT] tmcnet [DOT] com" with your comments. [ Back To TMCnet.com's Homepage ] |