Both operators and device manufacturers have begun to adapt to the unique needs
of these rural subscribers by evolving their product and service offerings.
Handset vendors are developing more rugged devices able to withstand harsher
conditions, as well as lower-cost devices, while operators have introduced
applications and services developed to make life easier for rural subscribers.
For example, in regions that lack the financial infrastructure of urban areas,
operators such as Oi Brazil and Safaricom in Kenya have developed systems that
allow subscribers to use their cell phones to make payments or transfer funds.
China Mobile has developed a rural “information service platform” that provides
up-to-date information on agriculture, healthcare and education to subscribers
via mobile phone. In countries such as China and India, where the cities are
filled with migrant workers from rural areas, operators have introduced roaming
plans that provide those subscribers with a cost-effective way to call home.
Managing the urban/rural balancing act with a single platform
As a result, operators in developing markets need to implement solutions that
allow them to support this wildly diverse customer base. Their operational
infrastructure must be able to handle not just the low ARPU, high churn and
pent-up demand for advanced services in urban markets, but also the even lower
ARPU of rural regions, as well as an often uneducated and illiterate customer
base that lacks access to information, financial and transportation services.
Many operators have addressed this
issue by adopting point solutions that
target a specific issue, such as real-
time charging to enable mobile money
services in rural markets or policy
control to better manage bandwidth
consumption in high-traffic urban
regions. While these solutions are
often cost-effective and quickly
implemented, they regularly create
silos that increase the operators’ costs,
require more manual intervention and
frequently lack the ability to scale as