Information Society Watch
A Southern Lens on the Information SocietyLow cost handset: Connecting Bharat with India
November 6, 2007, Rahul Gupta, I-Government.in
The article focusses on the current disparity in tele-density between urban and rural India with regard to mobile penetration and how low cost handsets can contribute to bridging this gap. The author notes that the primary barrier in the spreading of mobile services to the rural population is the prohibitive price of the handset. However, the scenario is now changing with the service providers as well as the handset vendors keen to tap this market. The major mobile service providers such as Vodafone and Reliance are now bundling low-cost handsets along with their subscription packages which has substantially increased mobile usage. The rural market also offers an opportunity to low cost handset vendors, though it also has some challenges, especially in term of lower margins and issues in providing effective service. In conclusion, the ultra-low cost handset (ULCH) will be a key differentiator in the increase mobile network usage and the race to capture the rural market share in India.