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The Management Research Journal:
Factors Influencing the Adoption of Cell Phone Services in Rural Areas
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There has been a phenomenal spurt in the growth of tele-density in the country, with the evolution of new wireless technologies; but the gap between the urban tele-density and rural tele-density has been continuously increasing (TRAI, 2004). Various policy initiatives have been taken to reduce this widening gap, which in turn, will result in tremendous potential for growth in rural areas. To make the adoption and diffusion growth possible, companies are constantly facing certain challenges in confronting the rural marketunderstanding rural consumers, taking products and services to remote rural locations, and communicating with the heterogeneous rural audience. While mobile phone usage in rural areas is rather an unexamined genre in academic literature, this explanatory study investigates the factors influencing the rural consumers' buying behavior in the mobile phone market. The data has been collected from the rural regions of Punjab, India, during July to December 2005, which includes 1357 respondents who use mobile phones.

 
 
 

Over the past few years, mobile phone adoption have generated a significant amount of hype and interest especially in India, where wireless industry is the fastest growing market in the whole of the Asia-Pacific region with a compounded Annual Growth Rate (CAGR) of 40-42%. But, at the same time, Indian telecom infrastructure in rural areas is lagging behind the expected levels and consequently, the gap between the urban and rural tele-density has been increasing. The urban tele-density has surged to 31.1%, while the rural tele-density has gone up by only 1.94% (Ringing Data, Financial Express, 2005). Two major reasons for this are the perceived lack of profitability of rural telecommunication and the lack of appropriate policies and strategies to provide Universal Access.

Experiments such as Hindustan Lever's project Shakti, ITC is e-chaupal and n-Longue's etc., are an attempt to wiring up Rural India. The efficient policy development is required at the government and corporate level, but at the same time, we cannot neglect the actual conditions at the ground level for the effective penetration of mobile market in rural areas. Although it is evident that the large players in the telecommunication business constantly conduct market research, the problem is that once they come to know the solutions of any problem, they usually keep the solution inside the company walls, which hide the consumer behavior not only in cell phone industry but in academic literature also. Corporates who have understood the psyche of rural consumers and markets, and have learned to work with it are successful.

 
 
 

Management Research Journal, Compounded Annual Growth Rate, CAGR, Wireless Local Area Network, WLAN, Communication Services, Indian Mobile Service Providers, Rural Marketing Strategies, Consumer Behavior, Micro-Entrepreneurs, Correlation Matrices, Eigen Values, Rural Telecommunication, Information Technologies, Rural Telecom Review Policy.