Report Details
Rural connectivity has long been an area of business that the MNOs have engaged wearily due to low population density and low RoI for infrastructure deployment. However, due to an uptake in mobile penetration in developing countries the rural connectivity market has rapidly become an important growth market for the industry.
Are the rural markets of China, India and Africa the next phase of mobile development?
In most countries, rural communities present a wide and untapped market for many products and services including telecommunications services that were initially targeted at mainly urban populations.
Until recently, telecommunications in rural areas in developing countries has been mainly drive by government policy and initiatives, which were both more or less limited to fixed landlines.
The rural teledensity (number of main telephone lines for every 100 inhabitants) is still very poor and can only be improved through the introduction of the appropriate modern technology along with the participation of private sector licensees.
• India
• China
• Indonesia
• Africa
This rural mobile connectivity report reviews and analyses the rural telephony market in India, China, Indonesia and a few African markets, looks at drivers and how to overcome obstacles to mobile telephony in remote, primarily low-income communities. It examines the role of new technologies, and argues for better integration of (and higher investment in) telecommunications in rural development planning.
In this brand new report, visiongain looks at telecommunications in the rural areas and isolated communities of developing countries. The report argues that telecommunications is a means to overcome distance barriers to participation in the economy and social sphere. It also links between telecommunications and the development process, addressing the benefits of telecommunications for rural and remote communities, while providing market projections based on intrinsic market dynamics.
Many areas around the world, such as Western Europe have become stagnant markets with decreasing opportunities for mobile expansion. With this in mind, Rural Mobile Connectivity has long been recognised by operators and manufacturers as a significant business and development opportunity.
How long can you afford not to participate in this emerging field?
Companies cannot hesitate making a decision whether or not to carry out business in these countries and regions.
Revenue opportunities are only going to increase as more people look to purchase mobile phones, whilst operators are also looking to roll-out 3G services. Network infrastructure is continually being built and upgraded which in turn will lead to increased subscription levels and revenues.
This latest report provides valuable information to operators, manufactures, content distributors and equipment providers alike. Reading this report will provide you with answers to the following questions:
• What technology considerations apply in the respective markets?
• What opportunities exist for foreign companies?
• How can companies benefit from the rising economic success triggered by mobile network deployment in underserved areas?
• What potential obstacles will operators and manufacturers face?
• What strategies should operators use to increase revenue and subscriber base?
• With enormous populations rural markets offer potentially great returns - you should be benefiting from them today.
Can you afford to miss out on the new emerging revenue opportunities? You can obtain this report today.
Visiongain is a trading partner with the US Federal Government
CCR Ref number: KD4R6
Table of Contents
1. Executive Summary
1.1. Growth Drivers for Emerging Markets
1.2. The Digital Divide
1.3. Potential for Businesses in Rural and Remote Areas
1.4. Importance of Providing Universal Access
2. Introduction – Introduction - Rural Telephony for Developing Countries
2.1. Furthering Socio-economic Development in Developing Countries
2.2. Delivering Growth in the Prevailing Adverse Economic Climate
2.3. Raising Living Standards
2.4. The Role of Mobile Telephony
2.5. Mobile Phone Ownership
2.6. Payment Modes
2.7. Social Networking
2.8. Focus of this Report
3. Barriers for Growth in Rural Telephony
3.1. Comparatively Low Revenues
3.2. Backhaul Complications
3.3. Power Supply
3.4. Geographic Considerations
3.4.1. Terrain, Soil and Rock Conditions
3.4.2. Forested Areas, Parks and Protected Areas
3.5. Demographic Considerations
3.5.1. Population Size
3.5.2. Population Density
3.6. Commercial Considerations
3.6.1. Significant Transportation Costs
3.6.2. Other Service Costs
3.6.3. Vandalism and Thefts
4. Universal Access
4.1 Challenges Facing Rural Inhabitants
4.1.1. Necessity for Action
4.2. Universal Access Funding
4.3. Two Gaps to Address: Poverty and Isolation
4.4. Universal Access vs. Universal Service
4.5. Universal Service Obligation
4.6. Universal Access Fund
4.7. Approaches to UAF
4.7.1. Type of sources:
4.7.2. Management of the Fund
4.7.3. Services Supported by Fund
5. Affect of Governments and Regional/Multilateral Institution?
5.1. Challenges Facing Governments and Policy Makers
5.1.1. Interconnection Terms
5.1.2. Preferential Access to Universal Service Funds or Tax Credits
5.1.3. Formation of Regulatory Environments
5.1.4. Sharing Infrastructure
6. Challenges Presented in Different Countries
6.1. Challenges to Operators in Rural Markets
6.2. Bangladesh
6.2.1. Company Initiatives
6.2.1.1. Grameenphone
6.2.2. Private sector participation
6.3. Brazil
6.3.1. Policy Management and Issues
6.4. China
6.4.1. Risks and Limitations of the Chinese market
6.4.1. Company Initiatives
6.4.1.1. China Mobile
6.4.1.1.1. China Mobile Rural Initiatives
6.5. India
6.5.1. Prime Minister Encourages Rural Growth
6.5.2. Challenges to Mobile Operators in India
6.5.2.1. Provision of Towers and Funds
6.5.3. Specific Challenges in India
6.5.3.1. Urban Saturation – Opportunities in Rural Areas
6.5.4. Company Initiatives
6.5.4.1. Bharti Airtel
6.5.4.1.1. The Four A’s
6.5.4.1.2. Bharti-IFFCO Rural Joint Venture
6.5.4.1.3. Extending Rural Reach through Deals
6.5.4.2. Bharat Sanchar Nigam Ltd. (BSNL)
6.5.4.2.1. Partnership with Intel
6.5.4.3. Comviva
6.5.4.4. Idea Cellular
6.5.4.4.1. Understanding Rural Requirements
6.5.4.5. Reliance Communications
6.5.4.5.1. Reliance RDEL Project
6.5.4.5.2. Initiatives Encourage Rural Growth
6.5.4.5.2.1. BharatNet Plan
6.5.4.5.2.2. Grameen Vas
6.5.4.5.2.3. Machine to Machine Applications (M2M)
6.5.4.6. Vodafone Essar
6.5.4.6.1. Strategic Initiatives for Rural Markets
6.6. Indonesia
6.6.1. Policy Implementation
6.6.2. Company Initiatives
6.6.2.1. Telkomsel
6.6.2.1.1. Reward of Taking Risks
6.6.2.1.2. Indonesian Government Contracts
6.7. Kenya
6.7.1. Company Initiatives
6.7.1.1. Safaricom, Kenya
6.8. Nigeria
6.8.1. Policy Management and Issues
6.9. Peru
6.9.1. Policy Creation and Management
6.9.1.1. Increased Investment
6.9.2. Company Initiatives
6.9.2.1. Movistar Peru
6.9.2.1.1. Movistar Renace Project
6.10. Uganda
6.10.1. MTN Uganda
6.11. Other Regions and Operators
6.11.1 MTN Community Telecentres
6.11.2. Nokia Economic Growth Venture Challenge
6.11.3. Vodacom
6.11.3.1. Vodacom Community Services
6.11.4. Zain Group
6.11.4.1. Zain One Network Project
7. Ultra Low Cost Handsets
7.1. LG
7.2. Motorola
7.3. Nokia
7.4. Samsung
7.5. Sony Ericsson
7.8. Vodafone and TCL
7.7. Other vendors
7.7.1. Olive Telecommunications
7.8. CDMA Scenario
8. UMTS and HSPA in Rural Districts
8.1. UMTS
8.1.1. UMTS900
8.1.2 HSPA: HSUPA and HSDPA
8.1.3. UMTS and HSPA Activities in Rural Areas
8.2. VSAT-based solutions for Rural Telephony
8.2.1. Gilat Satellite Networks
8.2.2. Hughes Network Systems (HNS)
8.3. Broadband Wireless Access (BWA)
8.3.1. Underserved Areas Provide Growth Opportunities
8.3.2. Advantages of BWA
8.4. WiMAX
8.4.1. Key Benefits of WiMAX Technology
8.4.2. WiMAX Certification
8.4.3. Benefits of Using WiMAX Equipment
8.4.4. Market for WiMAX
8.4.5. WiMAX in Mobile Communications
8.4.5.1. IEEE 802.16 Standards
8.4.5.2. IEEE 802.16-2004
8.5. WiMAX Frequency Spectrum
8.5.1. Licensed bands
8.5.2. Unlicensed Bands: 5GHz U-NII & WRC Bands
8.5.3. More Frequency Bands for WiMAX
8.5.4. Block Size
8.6. Spectrum Availability and Regulatory Issues
8.7. Case Study - WiMAX Vendors and Services in Nigeria
8.7.1. Hyperia
8.7.2. Direct on PC (DOPC)
8.7.3. Monarch Communications
8.7.4. Netcom
8.7.5. IpNX
8.7.6. Suburban Telecom
8.7.7. Startech Connection Ltd
8.7.8. Cost
9. Conclusion
9.1. Improving Rural User’s Way of Life
9.2. Why Provide Rural Coverage?
9.2.1. Handset Vendors
9.2.2. Network Vendors and Radio Equipment Vendors
9.2.3. Subcontractors
9.2.4. Real Estate Owners
9.3. Outline Forecasts
9.3.1. Population Coverage and Impact on Subscriber Growth
9.3.2. Impact on the ULCH Market
9.3.3. Economic progress and community empowerment
9.4. Rural coverage drivers
Chart 1.1: Bottom Five Connected Countries in World
Chart 1.2: Top Five Connected Countries in World
Chart 3.1: India Rural Teledensity, Q3 2009-Q4 2009
Chart 3.2: India ARPU Q3 2009-Q4 2009
Chart 6.1: Bangladesh Mobile Subscriber Share
Chart 6.2: Brazil Mobile Phone Handsets in Use, April 2009-April 2010
Chart 6.3: Allocation of FUST in Brazil
Chart 6.4: India Mobile vs. Fixed-line Market Share
Chart 6.5: India Mobile Operators Market Share
Chart 6.6: Indonesia Population and Mobile ARPU, 2009-2014
Chart 6.7: Nigeria Mobile Users and Teledensity, January 2010-March 2010
Chart 6.8: Uganda Telecom Industry Turnover, 2006-2009
Chart 9.1: ULCH Shipments, 2010-2015
Chart 9.2 - Global Rural subscriber growth
Table 4.1: Universal Access Funding Models by Country
Table 6.1: Areas Where IKSL Services are Available
Table 7.1: Vodafone 150 and Vodafone 250 Handset Availability
Figure 4.1: Two-gap Models Illustrating Limitations of the Market Place
Companies Listed
Alcatel-Lucent
Alvarion
Anatel
Axiata
Bharti Airtel
BSNL
China Mobile
China Satcom
Comviva
DOPC
Ericsson
Excelcom
Foxlink
Gilat
Globacom
Grameen Foundation
Grameenphone
GTL
Haier
HNS
Huawei
Hyperia
Idea Cellular
IFFCO
IKSL
Indosat
Intel
IpNX
i-Telecom
Jingpen
Kinpo
Kyocera
LG
Monarch Communications
Motorola
Movistar
MTN
MTN Village Phone
Navini
NCC
Netcom
Nokia
Olive Telecommunications
Orascom Telecom
OSPITEL
PBTL
Philips
Psitek
Reliance
Rose Telecom
Safaricom
Sagem
Samsung
Sibirtelecom
Soma Networks
Sony Ericsson
Startech Connection
Suburban Telecom
TCT/Alcatel
Telefonic del Peru
Teletalk
Telkom
Telkomsel
Telstra
TRAI
UCC
Uganda Telecom
UTStarcom
Vodacom
Vodafone
Vodafone Essar
Warid
Yello Access
Zain
ZTE