Since liberalization, the Indian telecom industry has made various marks in the working sector. There has been numbers of developments that is helping the consumers in great deals. Over the years, the scenario of telecom services has also been changed from voice to basic telephones, data and video services, VPN, WLAN, and WIMAX along with broadband and private networks have catalyzed the business operations. However, this development has not yet reached several rural areas because of which they are still in the category of underdeveloped while India is moving through the developing stage. Fall of ARPU (average revenue per users) is one of the reasons why telecom boom has not reached the Indian villages and several towns.
As competition is becoming intense in the market and as it is likely to continue, it will keep on affecting the rural India. As companies are sensing that moving towards the rural areas will also not help in an increased ARPU, the rural areas are still unable to get the taste of modern telecommunication. Along with this, industry experts have stated that Indian telecom sector is not having the proper infrastructure through which they will be able to cater to the needs of the rural areas.
As only semi-rural areas are being catered with the existing infrastructure, it is the major hindrance when it comes to tapping the Indian villages and towns. Along with lack of telecom infrastructure, rural areas in India are also lacking in basic infrastructure like electricity, which is coming in the way of development. Various research papers have given a result that there is nearly a gap of 74% when it comes to digital divide between urban and rural areas. Nevertheless, as telecommunication in the urban areas has reached a saturation point, new strategies are being implemented to serve the rural areas.