The fe Round Table Conference Telecom, April, 2008

Bridging the Connectivity Divide

When it comes to ringing in growth, telecom sector is a clear winner. The telecom industry contributed 8.1% or Rs 20,718 crore to the total FDI inflow into India from August 1991 to July 2007. With about 8 million new subscribers being added every month, India met the target of 250 million connections by 2007-end well ahead of time in October 2007.

Industry however faces a new paradigm, as it sets sights on 500 million phone, 40 million internet and 20 million broadband connections by 2010. Majority of the next 500 million customers in telecom will be in the rural areas that have lagged behind till now. Tele-density in rural areas is a dismal 7.9% compared to over 60% in urban India. The government has now set an ambitious target of providing 200 million telephone.

Next three years will be challenging for the industry, as telecom companies will enter different geographical and socio-economic regions to foster growth. Experts feel there are numerous opportunities in the rural areas but telecom industry will have to search for new business models to serve the have-nots. How can telecom companies extend the growth story to these new markets? What will be the spin-off effects on the rural economy?

The fe Round Table Conference aims to bring together industry experts, policy makers, along with telecom service providers and equipment vendors to discuss how to bridge the urban/rural divide in connectivity. The discussion will also endeavour to come out with the role telecom could play in democratizing access and bringing in societal transformation particularly in rural areas.