Government, associations to save PCOs

NEW DELHI: Technological changes have been making such rapid strides that either you assimilate the changes or be prepared to perish. One of these near-to-perish tribes happens to be the public call offices (PCOs). A joint survey carried out by the Assocham and TISA (Telecom Industries and Services Association of India) in the major metros of the country found that PCOs located in commercial areas have seen their profits tumble. The profits of these PCOs that were in the range of Rs 20,000 per month have now whittled down to less than Rs 5,000 per month. Says Assocham assistant secretary general DS Rawat, "At least 50 per cent of the existing six-seven lakh PCO operators will be forced to close within the next two years if they do not diversify." Therefore, the Task Force set up by the PMO has given a mandate that PCO operators be trained in the ways of the wired world in order to compete with cyber cafes and cyber dhabas that have been their bane. The bottomline is that PCO owners have to become technology-savvy and upgrade their existing set-ups to provide Internet access with facilities like e-mail, chats and browsing.

The survey pointed out two reasons for the declining profit margins of the PCOs. One is to do with the reduction in long-distance tariffs since most of the profit margins of the PCOs accrue from national and international calls. And with national long-distance calls all set to be reduced to less than one-third of the existing tariff and with the possibility of international telephony being opened up, the fate of the PCO seem sealed if they do not take steps to re-invent themselves. The second reason is the growing popularity of cyber cafes and the cyber dhabas, who along with Internet connectivity have also started providing telephone connections, thereby attracting more customers with their consolidated services.

The Ministry of Information Technology, TISA and Assocham have pooled in resources to train the PCO owners. While the government has provided the equipment required for the training, the implementation is carried out jointly by the associations. Other organizations that have pitched in their effort include MTNL and SIDBI.

The training program was initiated by a series of seminars that was largely funded by SIDBI to sensitize PCO owners about the threat to their existence. According to TISA vice president AK Chakrath, a model-training center has been set up in East of Kailash, Delhi, to provide training to PCO operators. The center, which has been operational for the past two months, trains about 80-100 people per month for a nominal fee of Rs 500. By the end of one year, the center hopes to train around 1500 PCO owners. The two-day training program offers basic exposure to computer, Internet usage and how to set up shop and be equipped to handle customer queries. Besides being trained in the basics of computer usage, operators will also be exposed to higher Internet-based applications like e-commerce and Web site hosting so that there are more business avenues for those who want to get into it, adds Chakrath.

The response so far has been heartening with an impressive number of participants being women entrepreneurs. The Associations would also help operators get finance in the range of Rs 50,000 to Rs 1.5 lakh from the Delhi Finance Corporation, Punjab National Bank as well as the Yuva Shakti Trust, which is supported by FICCI. The initiative is currently restricted to Delhi and its surrounding areas. Given adequate government support, the initiative will be expanded to the national level, says Chakrath.