Only available on StudyMode
  • Download(s) : 25
  • Published : March 5, 2011
Open Document
Text Preview
Future of Mcommerce in India. (KBS-2007 International Research Conference).

Prof.S.Balasubramniam( B.E(Comp Science), MBA (XLRI)
International of Business & Media, Pune
Email: exams_sbs@yahoo.co.in

Abstract: "The greatest wealth in the 21st century will not be made from products or services, but rather by the company that creates the conduit for international m-commerce through the mobile device". Mobile Commerce connects business and customers via the Internet through wireless devices, cell phones, Palm Pilots etc. In India Mobile phone networking in penetrating much faster than the telephone, internet or other networks. Its acceptance level is also much greater than the others. In this paper, the possibility of using mobile phones for m-commerce in the rural areas, the enabling factors, government support, the possible business and technical models will be discussed. Key Words: Economy, Rural Economy, Revenue, Internet, Internet Kisko, Mobile Communication, Backbone Network, M-commerce, Revenue model, Business model, Self sustaining Model.

[pic]Agriculture is the major economic activity in rural areas. Agriculture and allied activities employ 66.23 percent of the workforce of which 13.57 percent are land less laborers. Non-agriculture activities provide livelihood to 39.77 percent of the rural population. Working in agriculture was the primary activity for 82 percent of the young men between 24 – 45 years of age in 1971 dropped to 73 percent in 1982 and 53 percent in 1999. Even though the dominance of agriculture has decreased, it still retains its importance and contributes to 23 percent of the national GDP. In today’s context rural economy is in great crises due collapse of agriculture economy which in turn offers new models for reviving the rural economy.

Connectivity Status

The rural economy remains unaffected by the development in the telecom sector in the country. Thanks to the private operators who for a long time resisted fulfilling their rural (Universal) service obligations mandated by the policy in spite of warning from the (DOT) Department of Telecommunication and the telecom regulatory authority of India (TRAI) who also could not do much in this regard as the rural coverage of even the state owned BSNL was at 1.75 percent of its total coverage. Even though the connectivity of rural India improved on paper the effectiveness of the facility was always in doubt.

All these developments have made minimal impact on the status of the telecom infrastructure in rural India. The tele-density is low and internet in rural India is largely unavailable. The IT and Telecom revolution which has done wonders in urban areas seems to have bypassed the rural India. A better penetration of IT and Telecom infrastructure has the revolutionary potential to empower the people of rural India. It can help to improve the standard of literacy, health care and livelihood. Moreover, with IT and Telecom shrinking the physical distances, the hard working and talented rural lot will get a chance to compete with those in the urban areas and the developed world. (ITU Report 2004)

While India has a very long way to go in establishing a nationwide network of landline telecom networks, let alone high-speed broadband service, paradoxically, the country could overtake China in the next several years in terms of mobile-phone subscription growth. Rolling out towers and base stations to support wireless networks certainly isn't cheap. But it likely will be wireless networks—not copper-wire fixed lines—that do most to pull India out of the telecommunication dark ages.

TALK IS CHEAP. While India often gets a deserved rap for its rigid labor laws and heavy regulation in some sectors, that's really not true when it comes to telecom, which New Delhi started liberalizing back in the mid '90s. Telecom tariffs imposed on domestic voice services have dropped steadily, and today India enjoys the lowest call...
tracking img