1 / 17

Serving the next tier Market

Serving the next tier Market. Ashok Jhunjhunwala TeNeT Group, IIT Madras, Chennai, India ashok@tenet.res.in. The Next Tier India with a billion people is a large market.

nelle-rocha
Download Presentation

Serving the next tier Market

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Serving the next tier Market Ashok Jhunjhunwala TeNeT Group, IIT Madras, Chennai, India ashok@tenet.res.in

  2. The Next TierIndia with a billion people is a large market Monthly telecom expenditure (assuming 4% income can be spent on telecom) 3.2 6 8.8 12 17 25 42 62 150 • but 60% of Urban households can spend under $6 /month on Telecom • can service them only if per line CAPEX is less than $ 200

  3. TeNeT Group, 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 $ 600 per line three years ago to$350 per line • can be driven below $ 200 in next three years

  4. The Third TierRural Indian households can afford even less Monthly telecom expenditure(assuming 4% income can be spent on telecom) 3.2 6 8.8 12 17 25 42 100 • 75% (119 million) households can spend barely $ 3.2 per month on telecom

  5. And Why ICT in Rural Areas? Current Rural GDP in India = $ 130 billion For a Population = 650 million people GDP / Person = $ 200 Rural Prosperity DOUBLING Rural GDP $ 400 / Person

  6. 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 ?

  7. n-Logue incubated to connect Rural India • India has 600,000+ villages • 650 million people • Need • Technology • Sustainable Business Model • Organisation which can think and act Rural • Lower Connectivity Cost • Aggregate Demand

  8. To PSTN • 35/70 kbps Internet plus simultaneous telephone • $ 150 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

  9. Aggregate Demand • 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

  10. Organisations with Innovative Business Models • N-Logue :A Rural Service Provider • aggregate demand into a kiosk using • $1000 (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 • set up by a village entrepreneur on the line of STD PCOs • needs only $ 60 per month to break even

  11. What is the monthly income? • STD PCO $ 20+ • Children learn typing • all kinds of on-line and off-line education $ 10+ • Kiosk is a photography shop $ 6 • also a video parlour on weekend evenings $ 6 • email and browsing • voice mail and video mail $ 10+ • e-governance access • connect to taluka Government office for services $ 4 • and much more

  12. Word-processor in Indian Languages

  13. Mundi . . . . • A 60 year old from a village near Melur had lost vision for 2 years • through tie-up with Aravind eye-care hospital, vision was restored in one eye • IITM trying to develop Remote Diagnostic tools • Blood Pressure, Sugar & Iron, ECG Monitor, stethoscope, Temperature • at total cost of $ 200

  14. Consultancy on Crop Disease • Top: Ladies Finger Diseased with yellow mosaic • Below : Post treatment • Savings of $ 3000 • Cost of information $0:50

  15. The Power of multi-party video communication IITM - OOPS Low bit-rate Video Conferencing (audio + video + text at 20 kbps and more)

  16. Driving Enterprises in Rural Areas • Micro- Enterprise would require • micro-finance and loans • TeNeT and n-Logue working with ICICI Bank • Remote Bill Payment, Rural ATM, Micro-finance & Remittance • training and information • commerce and trading • coupled with a courier service for goods delivery • Insurance • small enterprises have limited risk taking abilities

More Related