Telcos Woo Rural Gujarat with Exclusive Business Models

From the Times of India

AHMEDABAD:
Telecom companies are aggressively tapping Gujarat's rural market-which has 35.6 lakh houses using cellphones as compared to 35.7 lakh urban houses.

The erstwhile price-sensitive rural customer is now looking at convenience over anything else. In a survey by Vodafone in rural Gujarat, findings suggest that recharge availability tops the priority followed by good network. Price only comes later. "In Gujarat, over 55 per cent of Vodafone's subscriber base comes from rural areas so we have allotted 70 per cent of our budget for rural areas in the state unlike other states where urban areas are given higher budget," said Brajesh Bajpai, chief operating officer, Vodafone West.

Vodafone has seen 12 per cent 12% year-on-year growth with gross revenues of Rs 3,100 crore in Gujarat. The company's market share in the state is 37.1 per cent. The company has a business model unique to Gujarat-Vistaar-which has been taken from the state and implemented nationally. The model has ensured that the sales force is different for rural and urban customers. Vodafone has set up over 800 'laal dukaan' or red shops in villages in Gujarat to help villagers spot recharge outlets.

"The rural sales force is trained in simple communication and to provide basic education of services whereas the urban sales force is taught to be more competitive and get market share," said Bajpai. Among other things, rural Gujaratis mostly use services like downloading music, checking weather, for emails and using social networking sites on their 2G handsets.