Indian telecom needs to cut costs

NEW DELHI: "India needs 250 million phones in villages to increase connectivity," said World Tel chairman, Sam Pitroda. According to him, the country would be able to achieve this growth from the present level of 80 million phones only if it manages to create a proper environment for the telecom sector. He was speaking at a workshop in New Delhi on Mission 2007-"Every village a knowledge center- a road map".

At a time when there is sporadic activity in the telecom sector, Pitroda said that we need to translate activity at the village level and affordability will play a key role. According to him, while the cost of laying one line has considerably come down from $1100 during the initial days, the country needs to bring it down to Rs 150 to Rs 200, if it wants to achieve the Rs 250 million goal.

Talking about the broadband access, Pitroda said that it was one of the most important factors in the overall access game. "If broadband comes to villages, cities could be connected to the villages easily. Basic problems of villages on the education and employment front could be solved through this broadband network. Medical applications could provide an opportunity for doctors to remotely monitor patients in rural parts while sitting in metros. We would need to think locally and develop local content and applications for this to be a reality," he stressed.

Talking about the huge gap between the western world and India, Pitroda explained that India couldn't afford to replicate things, which are relevant in the US and other advanced countries. "Our paradigm is very different from that of the west and we have to force innovations within the country on areas like — IT in sanitation, water and education. We have to be clear on what is deliverable and affordable. India has a different economic pattern," he added.

Speaking on the occasion, TRAI chairman Pradip Baijal said that wireless technologies need to be leveraged to there fullest so that that spectrum can be de-licensed. "Today in India, we live in the past, still holding on to spectrum that is open internationally. Thus while the other countries are continuing to move ahead with rural and urban development through wireless technology because of no licensing constraints, we haven't moved ahead," he explained.

Dwelling upon the fact that the addressable market of mobiles was around 120 million, Baijal said that India has reached such a low figure because the operators haven't gone to the interiors and villages. "They are waiting perhaps for USO support. If we increase our efforts in the rural areas, then we will reach an addressable population of 750 million by 2006 and dream number of 100 million would then be realized with a large proportion coming from rural areas," he explained.