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TeNeT Group at IIT Madras Driving Innovation in India towards emerging Market

TeNeT Group at IIT Madras Driving Innovation in India towards emerging Market. Ashok jhunjhunwala TeNeT Group, IIT Madras, ashok@tenet.res.in. India with a billion people is a large market, but 60% of Urban households can spend less than Rs 200 / month on Telecom.

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TeNeT Group at IIT Madras Driving Innovation in India towards emerging Market

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  1. TeNeT Group at IIT MadrasDriving Innovation in India towards emerging Market Ashok jhunjhunwala TeNeT Group, IIT Madras, ashok@tenet.res.in

  2. India with a billion people is a large market, but60% of Urban households can spend less than Rs 200 / month on Telecom Monthly telecom expenditure (assuming 4% income can be spent on telecom) 160 360 520 720 1000 1680 2600 7000 65 million Urban homes India needs Telecom CAPEX to go down to Rs10000 per linerequires disruptive technologies

  3. TeNeT Group at IITM took up the challenge • Incubated/ supported a dozen plus product companies and worked with operators to drive down CAPEX • Midas Communications Banyan Networks • NMSWorks Tejas Networks • Nilgiri Networks Chennai Kavigal • OOPS NeuroSynaptic • Jataayu Nextge • Benchmark Systems Indus technolgies • Usha Communications • Capex per line down from Rs 30000 per line three years ago toRs 17000 per line • Telecom is booming in India • India will add 150 million lines in the next 7 years as CAPEX is driven below Rs 10000

  4. To PSTN To Internet Fiber ring Video Server Fiber To The Building (FTTB) IITM - Midas corDECT Wireless in Local Loop • 35/70 kbps Internet plus simultaneous telephone • Rs8000 per line price • 2 million lines in 03-04 Fibre in the Loop Last meters on copper

  5. Always ONInternet connection onnot-so-good-quality existing copper lines already deployed in 30 cities   128 kbps V5.2 PSTN IP Internet 2 Mbps IAN HDSU IITM-Banyan DIAS (DSL on copper)

  6. IITM - nLogue Connecting Rural Areas • Rs 50000 per Kioskproviding telephone, Internet with multi-media PC, Camera, printer, power back-up, training and support • plus Indian language and video-conferencing software Vision Connect (voice and Internet) Rural Areas and Small Towns all over India Vision to Double Rural per capita GDP over the next 10 years

  7. IITM - Chennai Kavigal Multi-lingual Office Package

  8. Network Management System A must with distributed deployment of Intelligent nodes Convergence of Telecom and Internet management Manage traffic, subscribers, subscriber equipment and network health from management centers Next-Generation SDH Transport cost-effective transport network for voice as well as Internet traffic preferably on Ethernet Advanced software for easy management of networks and providing bandwidth-on-demand Advanced software features such as auto-discovery and point-and-click provisioning IITM-NMSWorks Tejas Networks

  9. Video Conferencing on Internet Low bit-rate multi-party Video Conferencing (audio + video + chat at 20 kbps onwards) On-line lecturing at low bit-rates Video Mail Tele-diagnostic kit for Rural kiosk Low cost diagnostic kit with basic physiological and bio-chemistry measurements Measures Physiological Signals (Stethoscope, Blood Pressure, Temperature, ECG) provides software for quality image sharing for skin, throat and eyes and provides routine urine and blood tests) NeuroSynaptic IITM - OOPS

  10. Softswitch Technology Full suite of 100% J2EE powered, Communications Convergence Infrastructure Packet-Switching technology in Carrier Grade & Enterprise Grade H.323 Stack and H.323 Gatekeeper SIP Stack and SIP Proxy Enabling wireless Internet SMS, MMS, WAP, SYNCand IM handset software WAP2 browser, MMS client, Sync client, IM Client, IOTA client Gateways on infrastructure SIM Platform, IM Server, OTA provisioning server

  11. Rural communications software developed in a rural setting BlueBill: real-time billing for voice, Internet and applications Minnow: ISP Data Centre on redundant Linux/PCs Customer Care & Billing Unicorn The Customer Care & Billing Suite Medusa The Mediation Suite e-Merchant The Mobile Commerce Suite Interconnect Billing The Settlement Suite Usha Communications IITM-Nilgiri Networks

  12. Educational Kits OFT : Optical Fibre Trainer LAN-T : Local Area Network Trainer Machine Vision Products Indus IC Mark Inspection Indus SOIC Inspection Indus Bond Pad Digitizer Indus OCR Reader Indus Graphics LED Inspection IITM - Indus Technologies IITM - Benchmark

  13. The Third TierRural Indian households can afford even less Monthly telecom expenditure(assuming 4% income can be spent on telecom)120 360 520 720 1040 1680 2600 4480 135 million households • 75% households can spend barely Rs 120 per month on telecom

  14. The Dream Current Rural GDP in India = Rs 650 Crore For a Population = 65 Crore people GDP / Person = Rs 10000 Rural Prosperity Using ICT toDOUBLING Rural GDP Rs 20000 / Person

  15. Agriculture Trade & Commerce Animal Husbandry IT-Based Services Agricultural Processing Industry Rural Micro-Enterprises are the Wealth Creators • Micro-enterprises need • Finance • Knowledge and Training • Buying & Selling • Insurance • Can Communications Enable these ?

  16. How does one connect Rural India • India has 600,000+ villages • 650 million people • can Rural India afford Connections? • Need • Technology • Sustainable Business Model • Organisation which can think and act Rural

  17. To PSTN • 35/70 kbps Internet plus simultaneous telephone • Rs 8000 per line price • 1 million lines in 03-04 To Internet n-Logue uses innovative Technology to connect Rural India • BSNL has fibre connectivity to most Talukas • CorDECT WLL developed at IITM • provides a telephone line and Internet connection in 30 Km radius • can connect 85% of Indian villages • start-up costs very low

  18. Aggregate Demand when affordability is low • Entrepreneur-driven telephone booths (STD PCOs) introduced in 1987 • night-time long distance charges reduced by a factor of 4 • Today • 950,000 STD PCOs covering every street of smallest town • generate 25 % of total telecom income • 300 million people use these PCOs

  19. Organisations with Innovative Business Models • N-Logue :A Rural Service Provider • aggregate demand into a kiosk using • Rs 50000 (including taxes) per Kioskproviding telephone, Internet, multimedia PC with web-camera, printer and power back-up for PC • plus Indian language software, video conferencing software, training and maintenance • set up by a village entrepreneur on the line of STD PCOs • needs only Rs 3000 per month to break even

  20. Telephone Backbone Application & Content Providers Internet Backbone • Scope: • 1 –3 Talukas • 25 Km radius, 2000 sq km • 4 – 500 K population • 2 - 5 towns • 300 -400 villages 500 + Connections (at least 1 in each village) ACCESS CENTRE • Connections: • Individuals • Government • schools and PHCs • Kiosks LSP Banks $ 1000 / Kiosk KIOSK OPERATOR Banks Micro Finance Organisations n-Logue Deployment Strategy

  21. Word-processor in Indian Languages

  22. IITM - Chennai Kavigal Multi-lingual Office Package

  23. Video-conferencing from OOPS/IITM Communicating with the Communications Minister (Shri Thirunavakarasu)

  24. Before After In aVillage in Madurai, the Lady’s Finger (Okra) crop was turning white The Agricultural Expert is no longer far away … The problem was sent to the experts at the Department of Rural Extension, Madurai Agricultural College and Research Centrewho diagnosed it as “Yellow Mosaic disease”

  25. Savings Saving to farmer - Rs 1.5 Lakhs Cost of Information - tens of Rupees The Farmer’s Field

  26. The Vet is On The Net … • This goat had a wound near its mouth and could not eat for a week • The advice from the doctor cured its problem in 2 days

  27. Emergencies are no longer Calamities … In the village of T Pudupatti, all hens are dying one by one. The symptoms for these hens are: First, their weight reduces and finally, their necks shrink. At this stage they die immediately. Until now, 300 hens have died in this way. How do we stop this? Please give us a solution immediately. From A. Sakkarai"

  28. … because Help is at Hand • A visit from the Government Veterinary Officials to vaccinate all hens

  29. Epidemics can be prevented with a Doctor on Call • A potential epidemic of Chicken Pox was halted by a simple email to the right people • Instant response from the Government Doctors

  30. Ordinary People have a Voice … • This is Veeramani - a man with disabilities • His job was to operate the pump for the Village Overhead Tank • The Village Head removed from his job and gave the post to one of his relatives • Through the kiosk, he sent an email petition to the Chief Minister’s Cell, attaching a photograph of himself

  31. Even the Chief Minister is not far away … 58276 In response to the CM’s letter, the BDO sent instructions to the Village Head that he given back his job - permanently A letter came back from the CM’s Cell asking that he be reinstated

  32. Eye Care • An email is sent to the Aravind Eye Hospital with a photograph attached • The patient is told that her problem was not serious and could wait for some time • The Benefits? • She saved a visit to the hospital • She knows she has to make that visit after 2 months

  33. Online Consultations

  34. General Health – An Online Clinic with a Doctor

  35. Talking to an Agricultural Expert

  36. Video-conferencing (6 kiosks in conversation)

  37. Bridging the Digital Divide – Computer Education for Rural Children

  38. Digital Studio – Low cost Photography Photograph taken with a Web Camera Photograph at Printing

  39. Can Kiosks become Micro-banks? • TeNeT and n-Logue working with ICICI Bank • Remote Bill Payment • Rural ATM • Micro-finance • Remittance • Credit and Product Marketing is one of the biggest requirement of Rural India

  40. Knowledge and Training • Another Driver of Rural Prosperity • Information Dissemination and Knowledge Enhancement • Need a Virtual University in every Districtto enable this • Basic Structure would • Consist of a Central Hub • And Knowledge Extension Centres in every village

  41. The Extension Centre • Virtual Extension of the University • Located in Every Village • Enhanced Village Internet Kiosk equipped with • Computer(s) • Internet Connection • Web Camera and Multimedia • Power backup • Local Language Software • Run by a local person who is trained to facilitate the learning process about 1000 such Extension Centres in Every District

  42. Sparse Area Communications -- where there is no fibre backbone? • Microwave or Satellite back-haul required • microwave link costs have come down • can be optimised further -- tower costs dominate • satellite back-haul needs special design providing significant data-rate at each remote hub • Hub serves 50 to 100 villages in 15-25 Km radius • driving down the total cost to connect a village • villages in sparser areas have less available money • finance and buying/selling may make even larger sense

  43.  15 -25 Kms with 50 connections ISRO-IITM For inaccessible Rural Areas <-- 256 Kbps 2 Mbps --> 128 Kbps --> 3.8 m antenna 2.4 m antenna PSTN Internet • 8-10 voice channels + 64/128 kbps Internet satellite backhaul • Each hub supports 16 to 20 remote sites with 2 Mbps downlaod • Rs10000 corDECT + Rs10000 backhaul cost per connection

  44. To Sum Up • Innovation requires unique understanding of market / need • how market can multiply rather than grow incrementally • Technological Innovation required to serve the need • often disruptive technology • delta addition can rarely make a significant difference

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