Rural teleconnectivity and development problems and prospects through: a case study of West Bengal

Abstract

Telecommunication is fast becoming an essential need of human being. A preliminary look on the tele-density figures of Urban India (15.16pct.) and Rural India(1.47pct.) can attract the attention of policy maker. Therefore there is need to have clear understanding of the issues, problems and prospects associated with rural tele-connectivity in India. Through a case study of West Bengal State having more than 97 pct.area as rural this study tries to suggest some alternate method for development of rural connectivity.Two myths generally surrounds around rural telephony. One is that the rural telephony is not profitable, and other is that there is not much demand anyway in rural area. Based on data analysis I found that there is enough demand of telephone connection in rural area. The rural telecom market has not yet been fully exploited. The DEL growth in Rural Circle of BSNL is highest. Regarding revenue potential I found that the Revenue Growth of Rural Circle of BSNL is more than the national average. In this study I have tried to argue that the viability of rural telephony should not be judged only by outgoing calls and subsequent realization of Revenue for that. The incoming calls also to be taken into consideration. Traditional method of expansion of rural communication based on waiting list needs to be discarded. The potential revenue growth exchanges within rural area needs to be selected using the steps suggested in the new methodology based on three vital parameter viz. Revenue Elasticity, Marginal Revenue per new DEL added and Average Revenue per DEL. Service Provider should give priority to those exchanges, which has high value for each of these parameters. For exchanges which has negative value of Revenue Elasticity and MRIDEL they may think of releasing DEL from that exchanges if Average Revenue per DEL per Month is less that the Working Expenditure per Del per Month. Regarding expansion and selection of technology, the Service Provider should give new connection from the existing exchange if there is a spare capacity in that exchange. Otherwise the new expansion should be taken on the other cheaper wireless technology. At present the GSM is the cheapest technology amongst all available option.