No network for mobile users in 1,275 Gujarat villages: Centre

The minister’s statement also showed that funds were not allocated or spent during 2014-15 and 2015-16 (till October) for the expansion of telecom services in Gujarat under the Universal Service Obligation Fund (USOF) — fund earmarked to to provide quality information and communication technology services at affordable prices to people in rural and remote areas. In 2012-13 and 2013-14, Rs 1.51 crore and Rs 0.20 crore, respectively, were allocated to Gujarat for USOF schemes.

“Since the demand of telecom services is price sensitive, the level of teledensity is also determined by the purchasing ability of consumers. The increase in rural teledensity has gathered momentum in recent times, but the wide gap between rural and urban teledensity can be explained by the difference in purchasing power of rural and urban consumers,” Prasad stated.

The purchasing power of an agricultural household in rural Gujarat, which has 17,843 villages, also appeared to be low. According to the situation assessment survey of agricultural households conducted by the National Sample Survey Office (NSSO), the average monthly income of an agricultural household in Gujarat during 2012-13 was Rs 7,926, and the monthly consumption expenditure was Rs 7,672. In Gujarat, the rural teledensity is about 62 percent (September 2015).

In March 2013, the rural teledensity in the state was a little over 53 per cent. However, private telecom operators like Telenor view the untapped rural Gujarat as a major growth driver. Rituraj Kalita, circle business head, Telenor Gujarat said, “In Gujarat, Telenor covers 55 per cent of the population and 25 percent of our subscriber base is in rural areas. Rural expansion is of key importance to Telenor and a major driver for growth in the circle.”