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

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

3. Dimensions of Digital Divide (1) Urban Vs. Rural Urban Teledensity :34 (31.12.2005) Rural Teledensity:~2 (31.12.2005) Overall Teledensity:11.43 (31.12.2005) 16 (October 2006)

4. 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

5. 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

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

7. 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

8. 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

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

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

11. Strategies Required Niche Operators Role for State Government Convergence Complimentary Infrastructure

12. Thank You