Indian telecom company Bharti Airtel has announced a major foray into the rural telecom market with the setting up of 4,000 Airtel Service Centres (ASCs) in the remotest villages of Maharashtra and Goa telecom circles. The strategy includes a combination of distribution and service under iServe Airtel Service Centre.

“ASCs are an important step in Airtel’s objective of expanding its rural base across India. Today, over 50% of our business comes from rural areas and going forward, a major percentage of new acquisitions are expected from the rural market,” said Manu Talwar, CEO (mobility), Bharti Airtel Ltd’s Maharashtra and Goa telecom circles.

The first ASC centre was opened at Ausarikurd near Pune on Friday.

Undertaken primarily to address the needs of the largely unorganised rural market, the ASC model includes identification and training of entrepreneurs in villages who run a multi-brand retail outlet in a good location with easy access, preferably located in the main market of a village with a high footfall to facilitate new connection, recharges and accessories.

“These centres are empowered to sell and exchange sim cards, activate, reactivate, recharge and provide other suitable value added services,” said Talwar.

Out of a total presence in 24,000 villages covering over 65% of the population in Maharashtra, 4,000 large villages have been identified for Airtel Service Centres. Initially, Airtel plans to make 1,700 centres operational by March while rest would be active by August 2009. The company plans to penetrate into villages with a population of 3,000 in Maharashtra.

“This unique rural model of distribution and service has evolved out of consumer studies which reflect that not only are these consumers hesitant to speak with machines, but are also not comfortable in talking to call centre agents or sending SMS. Therefore, our agents at the ASCs would help them in solving all their queries and problems related to the cell phone,” said Talwar.

Company officials, however, refused to divulge the investments in the project.

Nilanjana Ghosh Choudhury/ DNA-Daily News & Analysis Source: 3D Syndication