'Telcos should emulate FMCG's distribution in rural areas'
A robust distribution system similar to that of FMCG companies' will be crucial for the success of both handset vendors and operators in rural areas in the country.
NEW DELHI: A robust distribution system similar to that of FMCG companies' will be crucial for the success of both handset vendors and operators in rural areas in the country, says a report by telecom research and consultancy firm Strategy Analytics.
The report 'Handset Distribution environment in India' suggests handset manufacturers need to emulate a model similar to that of FMCG and pharmaceutical companies who have reached every corner of the country.
As FMCG and pharma industries are high margin business, they can afford to have their own distribution network in rural areas, said the report, adding that a collaboration with these companies would yield a much better result for the handset players as well as for the operators.
The lack of proper infrastructure in both rural and urban India poses great challenge for distribution networks in the country.
Rahul Gupta, Manager, Emerging Market Communications Strategies for Strategy Analytics said: "The success of rural telephony to a great extent depends on the approach that operators and vendors take in rural area. So, a robust distribution model that can penetrate deep in to the rural pockets holds the key."
Providing after sales service is another key concern in these areas. "In rural areas where there are no after sales service network, customers are normally left stranded," said the report.
The report 'Handset Distribution environment in India' suggests handset manufacturers need to emulate a model similar to that of FMCG and pharmaceutical companies who have reached every corner of the country.
As FMCG and pharma industries are high margin business, they can afford to have their own distribution network in rural areas, said the report, adding that a collaboration with these companies would yield a much better result for the handset players as well as for the operators.
The lack of proper infrastructure in both rural and urban India poses great challenge for distribution networks in the country.
Rahul Gupta, Manager, Emerging Market Communications Strategies for Strategy Analytics said: "The success of rural telephony to a great extent depends on the approach that operators and vendors take in rural area. So, a robust distribution model that can penetrate deep in to the rural pockets holds the key."
Providing after sales service is another key concern in these areas. "In rural areas where there are no after sales service network, customers are normally left stranded," said the report.
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