12th August, 2003
TELEPHONY
INDEPENDECE DAY FEATURE


POSTMEN RING TELEPHONE BELL AT RURAL DOORSTEPS

S. C. Pandya *


It was our Prime Minister’s 75th birthday and a Merry Christmas. For all the good reasons, 25th December, 2002 was a day of rejoicing, more so for the rural households. On this day, Shri Atal Bihari Vajpayee inaugurated a unique mobile postman pilot project, christened as Gramin Sanchar Sewa (GSS), to provide telephone facilities to every rural household, initially in 8,000 villages - yet another milestone in the history of over a century-and-a-quarter-old Indian postal system.

It was not just the customary laying of a foundation stone. The Prime Minister actually kickstarted a novel mobile postman telephone service. Whether a letter is to be delivered or not, the postman, along with a bagful of letters, also carries and displays a wireless phone, called fixed wireless terminal (FWT), for the householders to receive or make a telephone call. The householders can make not only local calls but national and international calls as well at normal PCO rates.

These phones have in-built display units which show the number of pulses for determining the duration of an outgoing call. Once the call is over, an on-the-spot bill is presented for instant payment by the person making the call. For easy calculation, a ready reckoner has also been provided along with the phone in the local language.

Disbursing money orders worth crores of rupees in lakhs of villages month after month, the hard-working postman who is honest to the core, is ironically labeled as the symbol of India’s snail mail. However, with the launching of the GSS scheme, the same postman has become the trendiest of the lot in the rural areas.

The pilot project was allocated a modest budget of Rs.2.5 crore, to begin with. As of August 7, 2003, as many as 1969 rural postmen were providing this facility in about 8,938 villages. These postmen are extra-departmental employees of the Department of Posts. As an incentive for providing this service, they are paid a 20 per cent commission on every outgoing call while the Department of Posts gets a 5 per cent commission. In addition, the postmen are entitled to claim rupees five for passing on a telephone message to the concerned person in the village.

Encouraged by the tremendous success of the pilot project, the Government has initiated the process of implementing this scheme in an additional 8,000 villages across the country. By all means, this is an innovative scheme designed to supplement the Government’s commitment of providing telephones in every village.

But the big question still remains unanswered. Can a postman, pedaling a worn out cycle over dusty village tracks, most often pug dundees, or traversing mountainous roads in remote and inaccessible villages on foot, ever fulfil the dream of providing phones in every village households? The answer is a clear No.

It is an internationally accepted fact that low teledensity, i.e. the number of telephones per 100 persons, is the sure shot recipe for backwardness. As of now, it is abysmally low at 1.4 in rural India. No doubt, BSNL is trying its best to provide maximum rural connectivity to increase the rural teledensity. It has, indeed, done an enormous task by providing phones in more than 5 lakh villages, out of a total of over 6 lakh villages, and has set a target to cover 35,000 more villages during 2003-04.

On the contrary, all six private operators who started operations from 1998 onwards, had rolled out services in only 7,123 villages by July, 2003. While accepting license, they had committed to provide telephones in 97,806 villages, by the year 2000, in six States, namely, Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, Punjab and Rajasthan. In all these years, they have not been able to fulfil even 10 per cent of their commitment.

In fact, for non-commissioning of the promised services, they have, so far, paid Rs.53.75 crore as penalty rather than providing rural phones simply because, as per the private operators’ claim, it is far too expensive for them to install, commission and maintain rural telephones. Both the public and private sector telecom managers are unanimous in their view that the investment-return equation just does not work out in hinterland phone networks. What to say of earnings, even revenues elude forever.

For surmounting this financial hurdle, the Government committed itself to universal service obligation (USO) to provide telecom facility at affordable rates in the rural and remote areas whether it is commercially viable or not. After exhaustive deliberations with the industry and the Department of Telecommunications (DoT), the Telecom Regulatory Authority of India (TRAI) recommended, in January 2003, that five per cent of the adjusted gross revenue (AGR) of telecom operators as well as carriers should be allocated, out of the licence fee collected by the Government, for funding universal service obligation.

Convinced about the necessity of providing financial support to USO, the Union Cabinet gave statutory backing, on July 11, 2003, for carving out a separate fund for the purpose. A bill to amend the Indian Telegraph Act, 1885, for creating this fund, was introduced in the Lok Sabha on August 4, 2003. After the proposal gets cleared by Parliament, the corpus will be put under the USO Administrator. Private operators should, then, have no difficulty in fulfilling their village public telephony (VPT) obligation.

Meanwhile, as a parallel exercise, the Government collected Rs.1,760 crore, during 2002-03, for the USO fund. For the first time, in May, 2003, a sum of Rs.250 crore was disbursed from this fund to fixed line service providers for meeting operational costs in providing rural phones. A major share of Rs.247 crore went into BSNL’s kitty since it operates the maximum number of village phones. The balance was distributed between private operators.

In addition to the Government’s untiring efforts, a Hyderabad-based non-government organisation (NGO) has also been in the news, for the last about one year, for bridging the digital divide between urban and rural areas. In nearly 200 households of a remote village called Kalleda, in Warrangal district of Andhra Pradesh, life has not been the same ever since the introduction of a "gram phone" by the NGO in the village.

The world has come within the talking distance of these villagers by paying just Rs.12.50 per month for a phone in their house. For this amount, they can make 30 outgoing local calls and receive an unlimited number of incoming calls every month. Of course, BSNL helped the NGO in the execution of this project. Eager to provide this facility, the Madhya Pradesh Government has approached this NGO to replicate the Kalleda experiment in the State’s villages as well.

It is estimated that BSNL has nearly 25,000 rural exchanges spread all over the country. Because of the unaffordable tariff structure, so far as the rural poor are concerned, all these exchanges remain under-utilised. The NGO, however, claims that if BSNL introduces these phones through its rural exchanges, it would not only heavily reduce its subsidy burden involved in rural telephony, but would also increase its revenue by about Rs.4,000 crore per annum. The icing on the cake would be availability of affordable telephones to the rural poor scattered all over the inaccessible and remote areas.

Finding reasonable justification in the NGO’s claims, the Department of Telecommunications appointed a three-member committee in July 2003 to make an indepth study of the project and report back to DoT on its feasibility. On its part, the NGO is, however, more than confident about the outcome of the study. Once implemented, the Government will fulfil its promise of providing phones in every village, BSNL will get rid of the subsidy being given to rural phones and the poor villager will get a really affordable phone. Indeed, a win-win-win situation for all the three stake holders!

* Senior Freelance Journalist

 

 
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