Free Mobile Phone for Rural Families Below Poverty Line?
A commendable initiative by handset manufacturers – the Indian Cellular Association (ICA, represents handset manufacturers) has sought Rs 5,000 crore from the Universal Services Obligation (USO) fund to give free cellular phone and a connection to families under the below poverty line.
Basically, telecom operators pay 5% of their revenue to USOF fund for DoT to fund telecom infrastructure in rural India – infact, in December 2007, DoT announced $2.5Bn funds to invest in startups (owing to unutilized amount in USO fund).
Rural India Goes Mobile
ICA’s recommendation:
- Invest in the 50 million BPL families by providing free of cost mobile handsets and connections with 100 free calls per month
- The mobile handset provided can be a basic phone with an AM radio, which can be useful for listening to relevant local language content.
- These radio stations should be made interactive and calls to these radio stations should be made free of cost. This investment of approximately Rs 4,000-5,000 crore has the potential of transforming the life of many families and individuals in this category. – source
As per estimates, free calls will enable these families to save around Rs 15-20 a month (in traveling costs etc) – which will enable them consume more services and after 2 years, start paying atleast Rs. 25 per month.
This is a noble idea combined with commercials. Essentially, mobile is just not about talking anymore, and given the right value – rural India is willing to pay for value services (see my earlier presentation on Mobile VAS in India).
What’s your take on this initiative?
Pic credit
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About the author - Ashish Sinha is a Startup Mentor/Product Strategy Coach, and the founder/chief editor of pluGGd.in.
He has launched/managed couple of products (consumer as well as enterprise) in US and India, and now consults with startups/small businesses on their product/media strategy. He can be reached at: ashish (at) pluGGd.in [+91 98452 06443]
Excellent initiative!
I am not sure, if it is an opportunity for VAS players atleast in near future. These are people below poverty line. There has to be a really solid use-case on VAS to give them a value and make them contribute to VAS revenue.
This is something good to hear if there is no conspiracy behind DoT and ICA.There is no way better than this to get more subscribers in times of recession.
But i think its the food and shelter that is required for BPL families not a mobile phone.
If they can pull out all the stops and roll this out without all the red tape and bureaucracy, this will be a rural revolution waiting to be ignited ! There are unlimited opportunities for startups to then target the rural markets with really compelling products that make these people part with their hard earned money. A big market, as India is by majority a rural country !
It will be good if people can think about giving free internet to rural India than Mobile phones. Atleast computers and internet will take the next generation of rural India to better heights.
Do you think calling a radio station and asking for songs is what these mobile target is ?
But do you have any thought on how these mobiles will be used. I am sure that these will be either sold @ the gray market or the usage will not be that productive. A 20% of people may use it productive.
Cheers – Ranjith
Dear Sir / Mam
Plz give me more information about free handset mobile. I like to take this scheme. I belong Family Below Poverty Line .
Sandeep Jain
M:09929579014