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The Way Forward With The GramPhone


Rural customers willingly pay that amount because it satisfies their ... Hyderabad exchanges till July 16, 1953 - Deccan Chronicle Report (July 3, 1953) ... – PowerPoint PPT presentation

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Title: The Way Forward With The GramPhone

The Way Forward With The GramPhone
  • RTFs Presentation to BSNL Committee
  • July 25, 2003
  • www. RuralTelecomFoundation. org

Is There an Innovation Whereby ..
  • BSNL can make Rs. 450 per line per month on
    rental alone
  • And

Rural customers willingly pay that amount because
it satisfies their telecom needs?
A Three Pronged Approach
RTFs Suggestion to BSNL
  • A Viable Tariff Provides revenue _at_ Rs. 450 per
    line per month to BSNL
  • Acceptable Value Fulfills 90 of the
    customers telecom needs
  • Affordability to a Rural Household At Rs. 50
    per month
  • (2.5 of family income)
  • ( one days wage of a male labourer)

An Innovative Package with GramPhone
  • Tariff
  • SDCA Package Rental Rs. 250 per month
  • 91 Area Package Rental Rs 500 per month
  • SSA Package Rental Rs 700 per month
  • Value
  • Unlimited calls in SDCA
  • Unlimited calls in neighbouring SDCAs 91
  • Unlimited calls in SSA
  • GramPhone makes it affordable

GramPhone Fulfills Obligations
  • 2 Million franchisees
  • The cheapest Micro-Manual Exchange
  • Smallest switch with highest intelligence ?
    better than any EPABX system
  • The cheapest operator at Rs. 600 per annum
  • 20 Million additional people on whom calls can

Popular Demand for GramPhone
  • Ankuram, a Dalit Collective ready to connect
    10,000 member families immediately
  • Self Help Groups (SHG) most suited to quickly
    utilize GramPhone
  • Incumbent upon BSNL to publicize this affordable
    solution leave it to the customer groups to
    finance in any suitable way

The Way Forward
  • BSNL to recommend to Government to issue policy
    directive to TRAI for selective deployment of
    flat rates
  • for revenue maximization
  • Provisions under TRAI Act

Directive from Union Government to TRAI
  • Under Chapter 6, Section 25, TRAI Act
  • Power of Central Government to issue directions
  • The Central Government may, from time to time,
    issue to the Authority such directions as it may
    think necessary in the interest of the
    souvereignty and integrity of India, the security
    of the State, friendly relations with foreign
    States, public order decency or morality.
  • Without prejudice to the foregoing provisions,
    the Authority shall, in exercise of its powers or
    the performance of its functions, be bound by
    such directions on questions of policy as the
    Central Government may give in writing to it from
    time to time
  • PROVIDED that the Authority shall, as far as
    practicable, be given an opportunity to express
    its views before any direction is given under
    this sub-section Contd..

Directive Contd ..
  • The decision of the Central Government whether a
    question is one of policy or not shall be final

Chapter III, Section 11, Proviso Under
Sub-section 2 TRAI Act
  • PROVIDED that the Authority may notify different
    rates for different persons or class of persons
    for similar telecommunication services and where
    different rates are fixed as aforesaid the
    Authority shall record the reasons therefor.
  • BSNL will have the liberty to selectively offer
    the package based on operational convenience

Rationale for Flat Rates
  • Historical
  • Indian Telecom, Madras 1892
  • Flat rates in use in Hyderabad exchanges till
    July 16, 1953 - Deccan Chronicle Report (July 3,
  • International Practices
  • SBC California Combination of flat rate and
    toll/pulse billing system
  • Other telecom companies including rural service
    providers implementing flat rates for local calls
  • NY Times report on ATT going for flat rates
  • Technological
  • Technology now permits revenue optimization
    through flat rate tariffs

The Flat Rate Experiment
  • BSNL and RTF to jointly implement the flat rate
  • Start with a baseline survey of all relevant
    parameters covering Parvathagiri Exchange
  • ? Incoming and outgoing traffic ? STD/PCO bills
  • ? STD Traffic (0 dialing) ? Fault rate
  • ? Individual bills ? Traffic pattern
  • ? Non-STD long distance traffic (95 dialing)

The Flat Rate Experiment (contd.)
  • Components and Responsibilities
  • Financial BSNL
  • Materials Suggested by RTF/ Procured by
  • Publicity Content by RTF/ Broadcast by BSNL
  • Marketing RTF
  • Installation BSNL
  • Monitoring BSNL
  • Sharing of info RTF/ BSNL

The Flat Rate Experiment (contd.)
  • Expected Outcomes
  • Demonstrate increase in per line revenue
  • Demonstrate increase in total revenue
  • Increase in customer satisfaction
  • Preparation of GramPhone Manual

Perils of Remaining Passive
  • BSNL presently gives 75 free calls per line in
    rural areas
  • Party line users presently share these free calls
    among themselves
  • BSNL will have to comply with a party line users
    demand for 75 free calls each
  • because ..

Party Line User Rights
  • Party lines are envisaged in Indian Telegraph
    Rules 1951, 2 ff.
  • India is a signatory to the Annexure on
    Telecommunications under GATT Section 7
    (Uruguay Round)
  • International Telecom Union recommends the use of
    party lines
  • Party lines have been implemented by DOT earlier

Party Line User Rights Contd ..
  • India is a signatory to UN Millennium Development
  • Target 18 - In co-operation with the private
    sector, make available the benefits of new
    technologies, especially information and
  • BSNL is a PSU, bound by the preamble of the
    constitution and fundamental rights, in
    particular Article 39 (b)
  • Article 39 (b)The State shall direct its policy
    towards securing that …
  • the ownership and control of material resources
    of the community are so distributed as best to
    subserve the common good

Further Advantages to BSNL
  • Helps fulfill USO
  • Rent is divisible by number of people sharing the
    last mile Subsidy not divisible as its based
    on individuals
  • More consumers served by same staff will reverse
    the trend of declining Operating Ratio

  • Flat rates and party lines pave the way for
    extensive rural coverage
  • Will transform the loss-making nature of rural
    telecom business
  • Fits in with current international best practices
  • Required by constitutional and international
  • Nationwide implementation in one year