India harvests Mobile2.0 – Frugal Regulation is next


Posted on September 5, 2010  /  1 Comments

The Indian farmers are exploiting mobile services and becoming more efficient. Weather forecasts and other information – critical to their livelihood – are being delivered through 2G networks. Thanks to the Indian operators’ innovative endeavor to tap the potentials at BOP. Daily Star reports quoting AFP.
Extremely cheap connection (US$0.35) and ultra-low cost handsets (<US$43.00) coupled with the world’s one of the lowest tariffs have been monthly adding 16~20 million new subscriptions in India.
Such miraculously minimal TCO is the result of practicing Frugal Engineering by the Indian telecoms industry.
Outsourcing the operations and maintenance of networks has stunned the world during middle of last decade. The rivals sharing each other’s infrastructure is another commendable step toward austerity. Now the Indian providers need “Frugal Regulation” to ensure the BOP’s sustainable growth.
The AFP report doesn’t reflect the fact when it says, “Building 3G networks, which are already operational in most developed countries, is expensive and they are likely to be restricted to urban areas to begin with.”
Seven Indian operators have altogether paid US$14.4 billion for the so called 3G licenses. One operator even borrowed from the bank to purchase this piece of paper. Indian consumers will inevitably bear this financial burden. It is the biggest barrier for Indian BOP’s universal access to high-speed Internet.
Bangladesh and Pakistan should avoid replicating such regulatory mistake and adopt frugal regulation.

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