Telecom company stocks are performing a very important role for the rural digitalisation of India. As more rural regions get internet access, telecom operators are eliminating the digital gap and creating room for development.
Initiatives like BharatNet and affordable services are bringing internet connectivity to remote villages, impacting everything from education to healthcare. But how are these companies making such a big difference in rural India? Let’s discuss the transformative role of telecom companies in shaping India’s digital future.
Initiatives for Rural Digital Transformation in India
Telecom stocks are significantly influenced by government initiatives. For example, the government has launched several projects to improve rural digital connectivity with the BharatNet network being one of them.
BharatNet Project
BharatNet Project is an important scheme launched by the government with the aim of enhancing broadband connectivity across rural India. Launched in October 2011, it seeks to bridge the digital divide by connecting all 250,000 gram panchayats (village councils) across the country.
- Phase I: Completed in December 2017, this phase connected 100,000 gram panchayats, covering 300,000 villages, by laying 300,000 km of optical fiber cables.
- Phase II: Initiated in 2017, this phase was aimed to connect the remaining 150,000 gram panchayats by March 2023, utilizing a mix of optical fiber cables, radio, and satellite technologies. As of now, it has connected approximately 2,14,283 Gram Panchayats (GPs), falling short of the target of 2,22,343 GPs.
Up to now, the BharatNet project has linked 2,14,289 Gram Panchayats with as much as 6,92,299 kilometers of fiber optic cables. They have also set up 11,91,587 Fiber-To-The-Home (FTTH) connections and put up 1,04,574 Wi-Fi hotspots as a means of last mile connectivity.
The project is now expected to finish by 2025. Delays happened because of procedural problems, poor coordination between departments, and other issues.
Public-Private Partnerships (PPP)
To expedite BharatNet’s implementation, the government approved a Public-Private Partnership (PPP) model in June 2021.
This strategy involves private companies in the creation, upgradation, operation, maintenance, and utilization of the network across 16 states.
The government has allocated up to ₹19,041 crore as Viability Gap Funding to support this initiative.
Role of Telecom Companies for Rural Digital Transformation
Telecom companies are essential in bringing digital services to rural India. Here’s how they contribute:
- Infrastructure Development: They build and maintain networks that connect remote areas, ensuring reliable internet and mobile services.
- Service Expansion: They offer affordable data plans and services tailored for rural consumers, making digital access more accessible. The Economic Survey 2022-23 noted a 200% increase in internet penetration in rural areas between 2015 and 2021, partly due to such initiatives.
- Technological Innovations: They adopt advanced technologies like 4G and 5G to enhance broadband speeds and coverage. Tejas Networks, for instance, supplies GPON equipment for BharatNet, aiding in rural broadband rollout.
Through these efforts, telecom companies are transforming rural India, providing access to education, healthcare, and economic opportunities.
Case Studies
Telecom companies have been instrumental in enhancing digital connectivity in rural India through various initiatives.
For instance, Tejas Networks, an Indian firm, has supplied GPON (Gigabit Passive Optical Network) equipment for the BharatNet project, facilitating high-speed internet access to over 200 million people across more than 40,000 villages. The company’s role in national digital infrastructure projects has boosted its financial performance. This growth is reflected in the rising Tejas Network share price, showing strong investor confidence in the company.
Similarly, IO by HFCL deployed India’s first PM-WANI network in Baslambi village, providing high-speed Wi-Fi to 6,000 residents. These efforts have significantly improved internet accessibility, promoting economic and social development in rural areas.
Conclusion
Telecom companies are driving India’s rural digital transformation through improved infrastructure and affordable services. As connectivity increases, rural areas are seeing benefits like better education, healthcare, and economic opportunities. However, challenges remain and continued support from both the government and private companies is necessary. Together, they can build a more inclusive digital future for rural India, unlocking endless possibilities.
