Development and expansion of rural communication has been one of TCI's major objectives. Following this goal, different types of systems such as point-to-point and point-to-multipoint digital radio, aerial optical fiber cable and satellite systems have been used in order to provide communication facilities for rural areas in Iran. It should also be mentioned that TCI has mostly used domestically manufactured products for small switching centers for villages. Also recently there has been some tendency towards transferring the management and control of the switching centers with less than 2,000 lines to the private sector. Even though this plan has attracted some attention among Iranian companies, so far it has not proven commercially attractive, mainly due to the subsidized costs of telecommunication services in Iran.
TCI's development plans for rural communication has resulted in a high growth rate in the number of villages covered by the telephone network. Table 3.8 shows the number of villages connected to the national telecommunication network, excluding those under satellite coverage.
Only in 1997, 1,625 villages joined the network which resulted in about 11% growth rate, bringing the total number of connected villages to 16,175, which comprises more than 80% of the rural population. Moreover, the number of villages covered by satellite systems was reported to be 3,137 by August 1997 which then increased by about 13% in a year and resulted in the total number of 3,556 villages, under satellite coverage, by August 1998.
The target figure for the end of the second five-year development plan was to provide 20,000 villages with communication facilities. However, the current number of villages, including those under satellite coverage, already exceeds this figure.