"Go rural" has become a pivotal slogan for marketing professionals, reflecting the rapidly evolving socio-economic trends in Tier 3, Tier 4, and rural areas. According to Nasscom, nearly 70% of the Indian population resides in rural areas and Tier 2, 3, and 4 cities. This demographic segment has become the prime target for consumer durable and non-durable products.
There are numerous compelling reasons for market players to expand into rural markets. The digital transformation accelerated by COVID-19 has driven significant changes, akin to a decade's worth of progress. With the rise of mobile phones and increased access to Internet services, smaller towns have become more connected than ever. This shift has facilitated the rise of remote classrooms and home offices, creating a clear path for companies to deploy Wi-Fi and other digital services.
Airtel Wi-Fi, which previously had limited availability, has addressed this issue by expanding its high-speed Wi-Fi services to over 1,200 cities. This development is a testament to the growing importance of rural markets in the digital age, providing a robust foundation for further economic and technological advancements.
Gopal Vittal, CEO of Airtel, addressed Airtel customers in a letter detailing a significant new development. He wrote, “While Airtel Wi-Fi has historically had limited availability, Airtel has worked towards solving this problem and now we have high-speed Wi-Fi available at present in 1200+ cities. This means that those of you who were unable to access high-speed internet will now be able to do so.”
At par with the firm’s capability, Airtel informs its consumers about the offers available with its value packs. “Offer the largest selection of TV shows, movies and web series which come included with your Wi-Fi plan. In specific, this content delivered through Airtel Wi-Fi will give you access to 22+ OTTs and 350+ TV channels. In addition, to signal our gratitude to you, every time you choose to add a new Airtel service - Mobile, Content, or Wi-Fi we will offer extra value over and above your basic plan,” added Vittal.
Another key factor driving companies to reconceptualize their products, services, distribution channels, and marketing strategies is the saturation point reached in metropolitan areas, where a wide range of brands and services are offered to the same set of consumers. In contrast, smaller cities are experiencing a rise in awareness but still face limited availability of options.
However, expanding Wi-Fi services into Tier 3, Tier 4 cities, and rural areas presents several significant challenges. Many of these areas lack the basic infrastructure necessary to support high-speed internet, such as cell towers and fiber optic cables. Other obstacles include unreliable electricity, geographic difficulties, and financial constraints. The cost of establishing Wi-Fi infrastructure in less densely populated areas is higher, and the predominantly agriculture-based, low-income economies of these regions further complicate matters.
In Tier 3, Tier 4 cities, and rural areas of India, the lower per capita income compared to Tier 1 and Tier 2 cities can limit the profitability of Wi-Fi service providers. As a result, companies operating in these areas often require government subsidies and incentives to thrive without significant obstacles.
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