Slow Growth In Mobile Service Subscription At Rural Areas

       The service provides will be held responsible for security of their own network as per new license terms and any violation would fetch a fine of 50 crores. The existing system of Department Of Telecom for mobile phone tracking have some security issues due to which it can be easily compromised by manual intervention.
    According to some telecom expert Indian rural market is attractive and there is an opportunity to make money over a period time in long term view. Rural mobile network will grow at slower rate unit mobile operators cut their debts. But service provider cannot rely on internet service and cannot expect high call duration at rural areas due to cautions consumer. Instead of that operator would have to provide attention on other services in local languages, education and health. Only after that they will start earning revenues from rural areas. Data from Telecom Regulatory Authority Of India shows that only 36.6 percent of population at village areas have mobile phone and subscription in rural areas and village areas is increased by 1.5 percent by end of last year. According to reports mobile service providers are under huge debt and it is expensive to build network in village areas. Clients in village areas are always wish to pay less for mobile service as they done have enough money to spend. Logistic problem and debt problems are another reasons of slow expansion in rural areas. In the third quarter from Sep 2011 to Dec 2011 only 1.5% growth in subscription reported, In Mar 2010 to Jan 2010 quarter the same growth rate was hovering around 9.17%. In same year 2010, Sep 2010 to Dec 2010 quarter reported highest growth rate of 9.98% in rural part of India. Experts says that there are various economical and geographical problems with expanding network due to which there is no significant growth in mobile phone users in villages. In villages population density is also very less compared to cities due to which operators have to build more towers and lay more wires to reach same number of customers. To lay more towers and wires it requires much more money and at the moment operators are short of cash due to various economical problems. Debt and interest payments of operators are also mounting up. In rural areas provider earn less money per each user as the income of villagers is limited as compared to the citizens. Poor roads and shortage of electricity are also problematic issues in rural areas therefore building network across village areas does not always pay off.