Why Rural Tourism

What exactly pulls tourists to our villages ?

– The clean air & pollution free environ thats hard to find in cities
– The “poor, hungry people” as highlighted by Circuit in MunnaBhai MBBS
– The slow pace of life & the simplicity of living
– Gandhiji’s words that India lives in her villages
– Low cost way to see the natural beauty of India (I had home stayed with farmers during my Sikkim visit)

I have been watching this industry grow considerably, but am still not sure whats the puller?

Rural telecom users price insensitive?

Read an interesting report in the ET today, based on some survey conducted by Credit Suisse. They survey found that the rural consumers are more quality consicous and less price sensitive. Hardly any of the polled users had switched operators basis call-rates.

Mobile operatorsThis is very interesting coz most of us (self included) had believed that this is a market where ARPUs would be low and constant reacquiring would mean that the telco’s hardly make any money.

Also the report says that the rural consumers would constitute almost 40% of the total users by 2012.These two findings have some serious ramifications:

– Infrastructure needs to be first priority when moving into a new market. Typically we had seen that most telco’s went to these markets with a promise of “cheaper” service

– The first mover will have advantage over others, everything else being same. This is evident from the lower switch rate seen in rural consumers.

– The marketing spends promos highlighting reduced rates etc will now have to be substituted with better distribution/session-experience.

But the most interesting this is that the rural consumers remain price sensitive inspite of having a clear priority for better service. This would make them a tough market for telco’s- providing high quality services at competitive price where ARPUs are anyways lower 🙂