Introducing Microtelecom
VNL coined the term “microtelecom” to describe the market we are pioneering. Microtelecom is the optimization of telecom infrastructure for a very specific application: serving low-income, hard-to-reach communities in rural areas.
Like microfinance, microtelecom is based on the belief that “bottom of the pyramid” consumers can be profitably served — as long as the product or service is designed appropriately.
Microtelecom refers to technology and business models designed from the ground up for low-income rural users, not just adapted from solutions for the developed world.
It is characterised by four principles:
- Low cost — Dramatic reductions in capital expense and running costs compared with the mainstream technology
- Low power — Ideally completely independent of an unreliable power grid
- Ease of deployment — Removing the dependence on a skilled or literate workforce
- Modeled for purpose — using business models that take into account local resources and limitations
By following these principles, microtelecom drives down the threshold of viability for mobile operators looking to profitably serve low-ARPU users.
VNL’s WorldGSM™ is the industry’s first microtelecom solution; a complete re-engineering of GSM for the billions of low-income, rural users.
“The cost of passive infrastructure is enormous and telecom companies should consider the infrastructural challenges in the rural areas.”
- Sanjeev Aga, Chairman
CII National Committee on Telecom and Broadband