This would enable banks to get more business from

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Unformatted text preview: opulation Illiteracy • Average rate of illiteracy varies between 50% and 80% The wireless phone will emerge as a new means for banks to tap the “un-banked” masses. This would enable banks to get more business from users who do not approach a bank today. This is clearly a multi-faceted opportunity to be tapped. Macro-economic and social conditions coupled with the status of infrastructure in India can provide an excellent eco-system for the growth of mobile banking. Network sharing is a new frontier of growth On the cost front, the first step is network sharing. Network costs account for 60% to 80% of the capital expenses and about 20% of the operating expenses.17 Domination of mobile phones ► Very low fixed line penetration between 1% to 2% ► Less expensive to develop a mobile network ► Dwellings unsuitable for the fixed line ► Operators are already sharing their passive infrastructure such as towers, diesel generating sets, battery back-up, fuel, air-conditioning and all civil support and partners share all costs related to acquiring a site. This results in fewer sites and less equipment to maintain. Subsequently, operators will engage in active infrastructure sharing that could include network sharing. There the spectrum would be owned separately and capital and operating savings would be available even in the Radio Access Network (RAN)components.18 Sharing parts of the networks with competitors helps operators to reduce capital expenses as well as lower their operating expenses. It is estimated that by sharing, operators can reduce a third of all 3G network costs and a fourth of 2G network costs.19 17 Grivolas, J., “Sharing to Save”, Ovum Research, 8 September, 2008 19 Senior executive, leading Telecom operator in India “The Rise of Network Sharing”, Oliver Wyman, www.oliverwyman.com, Page 2 18 “The growth in mobility is not driven just by low prices. It also includes deeper network coverage, better distribution network, and affordable handsets.”...
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