A Dangerous Ratio

Ibrahim Ahmad






I was surprised, though not shocked, to know that 2:31 was the ratio between
tele-density in rural areas compared to urban areas. What shocked me was the

fact that India perhaps would be among a few countries in the world with this

stark contrast. To translate the above ratio into actual numbers is even more

frightening. For over 70% of India's population-which means around 700 mn people

— living in around 600,000 villages, the tele-density is about 2 phones per

thousand people. What a disgrace for a country that is touted as the world's

fastest growing telecom market, and where every communications related company

in the world wants to have a pie of the big cake.






Telephone connection in villages is not just about talking. It is about
Internet, it is about broadband, it is about education, it is about health, it

is about economy. In other words, it is about empowerment. Clearly, neither the

Indian Government, nor the telecom industry, has villages on its priority. The

result is that 70% of the country's population is deprived of a cheap, easily

available and usable technology.






There
are serious drawbacks that I can see emanating from this approach towards rural

telephony. First and foremost is the digital divide that will continue to

remain. If people in rural areas are backward economically, they will have a big

impact on the national economy. Not that telephones will turn their fortunes

around, but it will surely open up lots of new opportunities for them. Rural

areas are now being considered as a source for skilled and semi-skilled manpower

across various types of jobs. The success of e-governance, which is about more

democratization, will to a great extent depend on connectivity. And besides all

this, rural areas are now emerging as big markets for a variety of products and

services, including telecom, which were traditionally thought fit for urban

population only.






Simply put, tele-density is not just about some numbers. It is about better and
faster decision making across all walks of life. It is about bringing a complete

change, at least in an important aspect such as access to information, in rural

India. Right information at the right time, as we all know, helps take the best

personal or business decisions. There is every reason to believe that a

well-connected rural folk would be better off.






The government must move fast on this. It should use all its convincing
abilities, and pressure tactics to get the operators together and work out a

plan that is primarily in the interest of the rural population, but makes some

business sense also. That has been a big de-motivator, and the performance of

all operators on this front is for everybody to see. Further, a much more

active, powerful, and aggressive USO driver is needed to monitor and drive all

the plans and targets that are set up. A more passionate person, who has dreams

about a well-connected rural India, should play the watchdog's role at USO, not

just any bureaucrat or technocrat. And we need more teeth for this office too.






Finally I will like to add that a lot more innovative thinking is needed from
the operators. They are focused on grabbing and holding onto urban markets. To

begin with, operators should stop seeing this as an obligation or a charity.

Rather they should look at it as an investment in market development. India will

be a much healthier and profitable market if it is catered to in its entirety,

and not in segments. Actually that will have to be the long terms strategy for

those who have big dreams. Otherwise, the 2:31 ratio will continue to remain

more or less unchanged, and will actually be dangerous for the country, economy,

and the industry too.






ibrahima@cybermedia.co.in