Economic impact of mobilephones and rural connectivity

The impact of ICTs on socio-economic development has been widely recognized during the last decade in most of the developing countries .This holds true for telecommunications infrastructure, especially mobile phones, which have had substantial penetration in developing countries ,especially in India. Increasing penetration of mobile phones and mobile enabled information services in rural India can reduce information asymmetry .

introduction

As an affordable and accessible means of communication, rural communities are realizing the potential of mobile telephony to create economic opportunities and strengthen social networks . The mobile telephone is no longer just an audio communication tool but capable of providing additional integrated functions.Mobile phones are the success story of bridging the rural digital divide, bringing tangible economic benefits and acting as agents of social mobilization through improved communication.

Mobile Telephony in Rural Areas

Socio economic benefits

Mobile telephony effectively reduces the “distance” between individuals and institutions, making the sharing of information and knowledge easier and more effective. Connectivity to the outside world... has been made so easy. Unnecessary commuting to urban centers has been tremendously reduced.

SOCIO-ECONOMIC IMPACTS

Key factors to success in rural areas

1 .According to the household heads report the use of mobile phone has improved in social activities such as marriage ceremonies, burials, meetings, and religious activities.2 .We can send short messages to multiple recipients.3 .The use of mobile phones reduces financial and time. costs associated with coordination of social activities.4 .Mobile communication can be used to enhance the social capital.

Mobile Phones and Coordination of Social Events

1 .Mobile phones have significantly changed the way rural businesses are being conducted. 2 .Business activities are positively (improved or greatly improved) affected by mobile phones. 3 .It helps rural traders to find better market and price information, making advance arrangements with suppliers and customers, as well as saving time and money by avoiding unnecessary travel. 4 .Business is an information-rich activity, mobile phones promptly communicate business information, reduce costs, and speeding up transaction processes.

Mobile Phones and Business Activities

Rural benefitsMobile telephony offers some unique opportunities, including:• providing a direct global communication channel to rural

communities. • making local content available.• making rural services more efficient (logistics,

coordination, etc).

These benefits are amplified by the fact that the spread of mobile technology in some rural regions has occurred much faster than with other information and communication technologies (ICTs).

Rural wireless data usage:-

ADVANTAGES:-1. It saves time.

2. It increases awareness of peoples.

3. In rural areas it creates a strong bond b/w. businessman and farmers( most of deal must be final on mobile phones).

4. Farmers must able to know MSP of their goods.

DISADVANTAGES:-• Peoples are fully embedded in apps of their mobile

phones.• Network is very big problem in rural areas.• In these areas peoples are not aware about mobile

phones(mostly smart phones) this is just wastage of their money.

• Using mobile phones peoples start illegal things.

Rural v/s Urban

Telecom penetration trends

1 .Mobile phones has enhanced (improved or greatly improved) their ability to access such market information. 2 .They can directly discuss prices with buyers and crosscheck prices for their produce through mobile phone, so no need to rely on middlemen or a few buyers.3 .Mobile phones are great help when making decisions on the best time to sell crops and animals as farmers could have instant information about prices. 4 .Mobile usage enables rural farmers to access to better markets and prices for their produce and are able to overcome the problem of being cheated by middlemen.

Mobile Phones and Market Information for Agricultural Produce:-

Next stepsThe continued success of mobile telephony in rural areas depends on policymakers and stakeholders:-• encouraging appropriate legislation and policies to enables

rural enterprises to develop business models that exploit mobile telephony.

• gathering evidence of impact through carefully planned monitoring and evaluation.

• documenting and disseminating good practices gathered from successful innova-tions which have had an clear impact on rural livelihoods, and can be replicated elsewhere.

• tailoring applications specifically to address the needs of rural communities .

Telecom’s future in rural

references

1. www.google.com2. www.wikipedia.org3. www.slideshare.net4. www.yahoo.com/answers

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