Evaluation of entry conditions for private operators in rural telecoms market – India

countries: India
key-subject: market entry, demand study, user survey, network technology, tariffs
client-type: government, financial institution

Undertaken for the Government’s Telecommunications Study Group, sponsored by the World Bank and International Finance Corporation (IFC).

The objective was to study and develop a strategy for small private operators to enter the rural market. Intelecon assessed the market and rural demand at state and district level, screened the regulatory environment and carried out detailed user research.

We recommended that rural telephony would not be a viable market unless the tariff regime were reformed and unless new operators were given much larger territories than the individual districts, which were under consideration. The ultimate policy decision was to invite larger scale new entrants to compete with the incumbent operator at the state circle level.