In Conversation with Akhilesh Shukla, COAI Director General Rajan S. Matthews highlights the Importance of Cooperation between The Government and Players to take the Telecom Sector Ahead
B&E: The overall penetration level in India has reached to 56%. Considering the affordability of the telecom services do you think more penetration is possible, as those who can afford are already added to the network?
RM: The penetration level in India can go up to 95%. Reaching the rest of the 5% would be very difficult and expensive for the operators. To achieve such a high level of penetration level, government and operators have to work together. Today, infrastructure is the major cost in rolling out the services in the rural area. If the cost of infrastructure could be brought down with the help of policy makers, we can achieve the huge penetration level. Besides, we need to relax the KYC (Know Your Customer) norm for the rural people. Some of the prospective customers lack basic documentation including date of birth certificate or a proper address proof; a must for a new subscriber currently.
B&E: What is the future potential and transformative impact of the telecom industry in India?
RM: The future of telecom industry is still very bright. Today, the data services account for 7% of the telecom revenue. The launch of 3G services by the operators could fuel the contribution from data services to 30% of the revenue. Mobile banking again has a very bright future. Today, the penetration level of banking services is struggling at 48% of the total population. In case the mobile industry helps in improving the penetration of basic banking services to the next 20% of the masses, it would be a huge opportunity for telecom operators. What we need to do is to continuously innovate keeping in view our domestic need and environment.
RM: The penetration level in India can go up to 95%. Reaching the rest of the 5% would be very difficult and expensive for the operators. To achieve such a high level of penetration level, government and operators have to work together. Today, infrastructure is the major cost in rolling out the services in the rural area. If the cost of infrastructure could be brought down with the help of policy makers, we can achieve the huge penetration level. Besides, we need to relax the KYC (Know Your Customer) norm for the rural people. Some of the prospective customers lack basic documentation including date of birth certificate or a proper address proof; a must for a new subscriber currently.
B&E: What is the future potential and transformative impact of the telecom industry in India?
RM: The future of telecom industry is still very bright. Today, the data services account for 7% of the telecom revenue. The launch of 3G services by the operators could fuel the contribution from data services to 30% of the revenue. Mobile banking again has a very bright future. Today, the penetration level of banking services is struggling at 48% of the total population. In case the mobile industry helps in improving the penetration of basic banking services to the next 20% of the masses, it would be a huge opportunity for telecom operators. What we need to do is to continuously innovate keeping in view our domestic need and environment.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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