According to an item reported by the Organisation of Asia-Pacific News Agencies, India’s tele-density is now over 8% as of the end of September. Tele-density rose to 8.03% from 7% in March this year.

The private sector accounted for over 75% of the expansion during these six months. To date, the private sector serves approximately 38 subscribers as of September 30, accounting for 43.8% of India’s subscribers.

However, in rural areas, only BSNL has provided additional Direct Exchange Lines (DELs) and Village Public Telephones (VPTs). BSNL added 380,000 new rural connections from April-August 2004 compared with 250,000 in rural areas during the same period in 2003. Over 1,900 VPTs have also been provided during the April-August period according to a Department of Telecommunications (DoT) press release.

The DoT has sought additional funds from the Ministry of Finance to compensate the operators providing rural DELs and VPTs, particularly BSNL.

Intelecon Research & Consultancy Ltd. 01/11/2004