Digital Divide in India: Causes and Solutions Ch Sambasiva Rao December 4, 2006.

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Presentation transcript:

Digital Divide in India: Causes and Solutions Ch Sambasiva Rao December 4, 2006

Structure of Presentation Dimensions of Digital Divide Responsible Factors Present Strategies Important Issues

Dimensions of Digital Divide (1) Urban Vs. Rural Urban Teledensity :34 ( ) Rural Teledensity:~2 ( ) Overall Teledensity:11.43 ( ) 16 (October 2006)

Dimensions of Digital Divide (2) Regional Disparities in Rural Teledensities: Central :0.71 Eastern :0.86 Northern :1.41 Western:2.34 Southern:3.87

Dimensions of Digital Divide (3) Interstate Disparities: Lower Side: Chathisgarh :0.52, U.P.:0.55, Jharkhand: 0.56, Bihar : 0.64 Higher Side: Kerala: 10.76, H.P.: 7.07, Punjab: 5.16

Strategies for Rural Telephony Strategies Envisaged by NTP 99 USO policy Affordable telecom tariffs Private Sector Participation

Strategy for Rural Telephony(2) USO policy a)limited support: to cover only the last mile- non-traffic sensitive part of the network b)subsidy to only basic and fixed wireless services

Success of USO Strategy BSNL main Participant Number of villages got public phones Limited usage: Absence of network externalities Public nature:often either not in working condition or not accessible to all the people Very few are STD enabled

Digital Divide:Two Critical Factors 1. Lack of Mobile services in rural areas 2.Large rural population is not exposed to telephone services

New Approach Great Potential rural demand for telecom services exist (NCAER’s Database) USO Support for Backbone Infrastructure Development

Strategies Required Niche Operators Role for State Government Convergence Complimentary Infrastructure

Thank You