The spread of digital connectivity and broadband access remains glaringly unequal around the world, perhaps most starkly so in India. While urban users increasingly enjoy the conveniences of 4G and fiber internet, rural communities still grapple with poor network access and speeds.
Bridging this digital divide by boosting rural and remote telecom infrastructure has been a pressing policy priority for years in India. The latest push comes through the newly launched Telecom Technology Development Fund (TTDF).
The Widening Rural-Urban Digital Divide
- Only about 26% of rural households have access to broadband as against 67% penetration in urban households
- The average rural user consumes less than 1 GB per month versus 14 GB per user for urban India
- Over 30,000 villages remain untouched by mobile networks, leave alone high-speed data
- Urban tower density is over 10x higher than rural areas
Key Challenges to Rural Network Expansion
- Mountainous terrain and remote locations make infrastructure rollout expensive
- Lack of reliable power supply – over 60% telecom towers depend on diesel generators
- Sparse customer bases spread over large areas make investments commercially unviable
Past subsidy-linked efforts to expand rural networks have had limited success. The new TTDF scheme takes a more innovative technology-centered approach.
TTDF Framework
- Launched in October 2022 under India’s Universal Service Obligation Fund
- Rs 500 crore fund allocation till 2025-26
- Aims to spur indigenous design and manufacturing of cost-effective last-mile network solutions tailored to rural requirements
- Support through innovation grants and prototype development funds
- Solutions deployed to be owned and operated by Indian companies
This moves focus beyond temporary subsidies to long-term self-reliance in affordable rural access technologies aligned to local infrastructure challenges.
Indicative Solution Areas
| Category | Focus Areas |
| Cellular Network Tech | Open RAN, aerial fiber deployment, aerial base stations |
| Transmission Networks | Next-gen WiFi, LiFi, Hybrid Wireless Fiber |
| Power Solutions | Solar, Hydro and Biomass-powered off-grid towers |
| Applications | Rural digitization apps spanning agritech, fintech, e-Governance |
Startups Targeted for Support
Startups would be ideal recipients by using cutting-edge connectivity innovations like:
- New wireless transmission protocols
- AI and ML-based intelligent networks
- Low-power Wide-Area IoT devices
- Aerial infrastructure solutions like drones, balloons
Implementation Plan
- 9 Telecom Centres of Excellence (TCOEs) to evaluate proposals
- Up to Rs 5 crore funding per project
- 85-100 product development initiatives to be funded by 2025-26
As India charges towards a $1 trillion digital economy target by 2025, ensuring broadband inclusivity through supportive innovation ecosystems will be vital.
The Rural Access Divide
- Rural teledensity stagnant at 58% versus urban teledensity nearing 130%
- Only 55% of India’s 6 lakh villages have internet connectivity
- Over 90% mobile subscribers restricted to 2G networks, 3G coverage in rural areas has actually declined in recent years
- Average rural internet user consumes just 934 MB per month, tapping less than 1% of full broadband potential
Key Rural Infrastructure Gaps
- 63% rural population not covered by mobile broadband as against only 3% uncovered nationally
- Fibre network builds slower – in 2021, only 25% rural towers had fibre backhaul versus 60% overall
- Power issues abound – over 30% rural towers lack grid connectivity and depend on diesel generators
TTDF’s Innovation Focus
The Technological Challenges in Boosting Rural Connectivity Call for Made-in-India Solutions Aligning to Local Needs:
- Intelligent hybrid network selection combining satellite, cellular and WiFi
- New wireless transmission protocols customized for rural environments
- Innovative energy solutions like solar, wind, biomass integration
- Aerial options like drones, tethered balloons and autonomous airships
- Leverage TV white spaces, LiFi along with advancing cellular tech like Open RAN
Envisaged Outcomes
With Rs 500 crore corpus until 2025-26, TTDF aims to enable:
- 15-20 technological innovations tailored for rural access
- Support 100-150 startups and commercialization by Indian firms
- 60% enhanced broadband connectivity by tapping tailored solutions
- Local equipment costs to reduce by 30-40% to improve RoI for telecom operators
- Made-in-India IP generation with globally competitive rural network products
As digital inclusion charges ahead as both economic and social imperative, schemes like TTDF that foster supportive innovation ecosystems around bridging access gaps will be pivotal for an Atmanirbhar Bharat. By incentivizing Made-in-India connect solutions, TTDF promises to plug a vital gap in enabling access opportunities for rural Bharat.