Going Rural Holds Promises and Problems For Cellular Companies

Keeping up with our rural India theme, here’s an interesting article I came across in the Financial Times [subscription required] that highlights the huge opportunity as well as problems awaiting cellular companies in rural India. Mobile phone operators are facing a catch-22 situation: they have to tap the rural market to sustain the growth they are seeing but entry into the rural markets is costly because of poor infrastructure as well as the lower purchasing power of consumers.

Telephone penetration in big cities can be 50 per cent but it remains as low as 2 per cent in tens of thousands of villages.

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