Mobile Telephony and The Strange Case of Dr. Jekyll and Mr.Hyde

The concept of a "split personality" - multiple distinct personalities that reside within a same body and are capable of individually controlling a person's behaviour - has intrigued doctors, writers and mankind in general.

One of the best known examples from the literary world that used the concept effectively would be "Strange Case of Dr.Jekyll and Mr.Hyde" by Robert Louis Stevenson. Published in 1886 as a novella it went on to become on of Stevenson's most famous and bestselling works.

And this week the Indian government gave us the best example yet from the non-fiction world when it became apparent that it was considering handing out 6 million mobile handsets together with 200 minutes of talktime free of cost to households earning less than Rs.22-29 per day (do read this detailed analysis by my colleague Udit Misra on how the "poverty line" is calculated)

In case you were wondering, that was the 'good' Dr.Jekyll personality of the government in action. Although I do wonder, given that our citizens have fewer toothbrushes than mobile phones, might it not have been better to focus on dental health instead?

Anyhow, the government apparently wants to empower the poorest of India's poor, especially in rural areas.

But like Agent Smith tells Neo in the Matrix when the latter asks for his phone call, "Tell me, Mr. Anderson... what good is a phone call... if you're unable to speak?"

Because the government's 'evil' Mr.Hype personality has been progressively killing rural telephony for the last few years.

It's proposal to snatch back and 'refarm' the 900Mhz spectrum held and used by the likes of Airtel, Vodafone and Idea will make it impossible to profitably serve the rural market.

It's decision to impose an 8 percent license fee on tower companies, most of who are bleeding, will force them to focus on urban or semi-urban areas only.

So dire is the rural telephony business case in India today that an erstwhile head of a leading mobile operator says investments have come to a near standstill since 2008.

Operators like RCOM and Bharti have even reneged on their rural commitments, which they themselves had bid for.

After destroying all the economic incentives for private operators to service the rural customer, the government now turns from Mr.Hyde to Dr.Jekyll and decides to hand out free phones to the poor.

The thoughts and opinions shared here are of the author.