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using Rural India as an example

Can Internet provide opportunity for the 5 billion unconnected in developing economies to leap-frog Part 1: Technology and Business Model. using Rural India as an example. Prof. Ashok Jhunjhunwala, IITM, Chennai, India ashok@tenet.res.in. Power of Internet.

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using Rural India as an example

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  1. Can Internet provide opportunity for the 5 billion unconnected in developing economies to leap-frogPart 1: Technology and Business Model using Rural India as an example Prof. Ashok Jhunjhunwala, IITM, Chennai, India ashok@tenet.res.in

  2. Power of Internet • Internet provides an Opportunity for Developing Economies • to stand up and be counted in the world • leave two hundred years of colonisation, slavery and resulting lack of confidence behind • How? • So far one needed to be in the developed part of the world • to get access to resources and education • to be able to compete • to be able to use one’s ingenuity and hard work for one’s economic and social benefit • Now, for the first time, the Internet can bridge the distance July 04, Japan2

  3. But per capita income is no more than $ 200 per year India has a 700 million represents average of developing economies in terms of Population Vs Income in 600,000+ villages in India (about 1000 people per village with per-capita income of $ 0.40 per day) Can technologies make a significant difference in life of such people? Health & Education and it significant enhancement of their incomes And can they afford these technologies? 135 million rural households Rural Population of DevelopingCountries is 3.5 billion July 04, Japan3

  4. To Scale to all the villages in India • One needs • Technology • Sustainable Business Model • Organisation which thinks and acts Rural July 04, Japan4

  5. Connectivity

  6. BSNL (state owned incumbent operator) has fibre connectivity to most County (taluka) capital and towns and fibre has almost infinite bandwidth carrying capability 85% of villages within 15-20 Km radius of these taluka towns In India, typically 300 villages in 30 Km radius wireless systems can connect most of these villages wireless technologies are continuously evolving costs come down and bit rates go on increasing Leveraging Public Contribution

  7. To PSTN • $ 200 per line deployed cost (including towers and mast) • 1 million lines being deployed To Internet Innovative Technology to connect Rural India • CorDECT Wireless in Local Loop developed at IITM, India • provides a telephone line and 35/70 kbps Internet connection in a 30 Km radius • 100/200 kbps connectivity in near future • 1/2 Mbps connectivity with OFDM (like 802.16) in future • Exchange and tower in town • Works at 55 C • Power requirement: 1 KW • start-up costs very low July 04, Japan7

  8. In future • Connectivity requirement in each village • up to 1 to 2 Mbps or even 5 Mbps dedicated connection to each village can be served by terrestrial wireless • OFDM … WiMax … other emerging technologies • as need goes higher, fibre or point to point wireless (microwave) may be required • 7 to 10 years hence • 15% Sparse Area village will require special attention • double hop (satellite and terrestrial wireless) may serve most of these villages (99%) • direct satellite connection required in about 1% of villages July 04, Japan8

  9. <-- 256 Kbps 2 Mbps --> 128 Kbps -->   3.8 m antenna 2.4 m antenna 15 -25 Kms with 50 connections PSTN Internet IITM - ISRO Sparse Area Communications where there is no fibre backbone • 8-10 voice channels + 64/128 kbps Internet satellite backhaul • Each hub supports 16 to 20 remote sites with 2 Mbps download • $ 200 corDECT + $ 200 backhaul cost per connection

  10. Sustainable Business Models with such low affordability how will the business scale? Existing Businesses have declared this unviable

  11. Business Model:Use Local Entrepreneurs to drive ICT • Entrepreneur-driven operator assisted telephone booths (STD PCOs) introduced in India in 1987 • Today in urban areas: • 950,000 such PCOs covering every street of smallest town • generate 25 % of total telecom income • 300 million people use these PCOs • Lesson for Rural: • To serve Rural people with incomesless than $ 1/day, aggregate demandand let Entrepreneurs drive it Aid/ Grant does not scale Successful Enterprises can scale to all villages July 04, Japan11

  12. Innovative Business Models • n-Logue :A Rural Service Provider • aggregate demand into a kiosk • owned & driven by a local entrepreneur • $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, training and maintenance • set up by a village entrepreneur on the lines of urban PCOs • provides telephone, stand-alone Computer and Internet services • needs $75 per month to break even (7cents per person per month) July 04, Japan12

  13. Application & Solution Providers • Provides Training and Technical Support • Handles Licensing and Policy issues • Provides Internet Backbone Connectivity • Enables Kiosk Services through Alliance Partners • Creates Awareness Internet Backbone • Markets Connections • Provides Onsite Support and Training • Manages Local Web & Email Services • Manages Local Content Pages • School/PHC • Private Business • Government Office • Rural NGO ACCESS CENTRE Local Service Partner Scope: 3000 sq km 400-600 connections (1 in each village) • Provides Internet Access to Local Community • Provides Awareness and Training • Channels Information needs of Community through LSP to Application & Content Providers Internet Kiosk Operator Financing

  14. The Kiosk Owner • Should have studied up to Class 10 • Need have no prior computer Training • Should be able to communicate to the people in the village Top: Suganya from Madurai Dist,TN Left : Anishaben from Banaskanatha Dist,Guj

  15. Learning typing Computer education Photography movies on CD DTP work Email/voice & video mail E-Government Video conferencing providing Tele-medicine Vet Care E-learning E-Agriculture Kiosk: Bouquet of Services (besides telephony) July 04, Japan15

  16. 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 The Vet is on the Net ... Rural Magic:The next few slides contain true stories which have “magically” impacted the lives of people in Indian villages . July 04, Japan16

  17. July 04, Japan17

  18. To Summarise • Internet is power • Provides an opportunity for developing world to leapfrog • Wireless Technologies will allow easier connectivity to hitherto unconnected villages • Wireless Technologies will continuously evolve over the next three to four years to enable broadband • Fibre or satellite backhaul required • Innovative business model driven by local entrepreneurs required • Shared Access is the quickest way to reach the rural areas • Regulations is the key : must enable these efforts July 04, Japan18

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