ICT-Based Service Delivery in the Remote Areas

1. ICT-Based Service Delivery in the Remote Areas Md. Asifur Rahman Research Fellow System LSI Research Center, Kyushu University

2. Purpose of This Presentation Explaining the challenges to offer ICT-Based services in the remote areas. In this regard we will discuss a test case where we introduced such a service as a pilot case. Please note that we used the state-of-the-art technology to introduce the service with the same functionalities that is available in the developed world. At the same time we considered the affordability of the services and other financial issue.

3. Scope of ICT-Based Service Definition: “The term ICT refers to convergence of text & audio-visual data and telephone networks with computer networks through a single cabling or link system.” In simple terms, any service involved with computers, software, networking, and telecommunication technology. Impact in Society: As a result of this concept, the cost of service delivery is significantly reduced due to elimination of overlapping various communication technologies. Popular ICT-Based services suitable for Emerging Mass: • eMoney • eCommerce • eHealth • eEducation • Different Public services

4. The Test Case We have introduced eMoney service in a remote village of Barishabo Union of KapasiaUpzila under Gazipur district. The locality is selected due to it very low infrastructure facilities. The village is 70km north of Dhaka city with sizable population and vibrant economic activities. In our pilot implementation 200 users were given eMoney cards. Scope of our eMoney service: • Villagers will register for the service and receive the IC Card free of cost. • There will be 5 merchants available in the market for charge, spending, encashment of real money against eMoney. • The category of the service is Limited purpose eMoney.

5. Infrastructure Following infrastructure support is required for the service: • Electricity for running the equipment. • Data communication facility • Banking facility • Moderately intelligent people to operate the system • Descent cash flow in the market Following infrastructure are available in the locality: • Sonali Bank has a branch in the market. • Mobile networks provides data transmission facilities in limited scale. • Plenty of intelligent people to operate and maintain the system • Good number of transaction throughout the day in the market and around it.

6. Challenges • No grid electricity supply • Although number of transaction is high but the volume of each transaction is very low. • Mobile data network is not very reliable. Still expensive comparing the volume of financial transactions. • The cost of the IC card is too high. To mitigate the challenges we designed specialized devices and thought of introducing a suitable business model. We also considered independent self sustained solar energy based power services to ensure electricity in the locality to charge all the necessary devices.

7. Devices • Low cost simple reader-writer • Can work offline and keep record of 1000 transactions before uploading • Do not print receipt but confirms the transaction in a very simple way • Have optional audio facility to confirm the transaction values • Multi-purpose IC card • Can hold data within the card so that it can be transacted offline. • Able to offer multiple services through the same card, that would reduce the operating cost significantly.

8. Rural Powerhouse • Electricity is produced from Solar Energy. • Since all the equipment run on DC power, we made the distribution and charging system DC based to avoid 18% conversion loss • The facility could be made commercially sustainable from the revenue earned from charging devices and LED lamps. • The cost of lighting for the villagers could be kept almost equal to that of kerosene lamps. Please note that the quality of lighting is significantly higher.

9. Business Model • The IC card will be distributed to the villagers free of cost. • Multiple services (social safety net service, eCommerce, Salary disbursement, Microfinance, etc.) will be delivered through the same platform. Here every service providers will bear the cost of infrastructure partially. • The service providers will be benefited from the reduced operating cost. • Incentive for the merchants, and cash manager will be provided from the benefit received from the average ideal balance in the IC card system.

10. Contribution to the society • Reduced risk of physical cash carrying. • Availability of the service on demand. Presently banking service is not available for 6 hours a day for 5 days and MFIs provides service once a week. • Different public services can be consumed instantly and transparently. • New services can be made available as on demand at a reasonably affordable cost. • Nationwide availability of the service would allow inland remittance, Cash collection, money transfer safe and easy.

11. Financial Sustainability • Each card cost Tk.400 and can deliver theoretically unlimited services. If we consider 10 services to be delivered through the platform, then each service provider needs to pay Tk. 40. Presently MFIs take 20-40 Taka for passbook and Post office takes 50 taka for cash card. • As the whole system runs offline, Maintenance cost of the platform is negligible. The local cash manager can upload the transaction data collected from the merchants once a day. • The cost of the R/W is less than $100. Does not need any recurring cost for printing. Charging cost for the device is 5 taka per day. • The system is so simple, that the users could start using the system after an hour training.

12. Incorporating New Services We have already tested some services successfully though this platform: • Microfinance services • eMoney • eHealth Incorporating following services would make the life of the villge people very easy: • Government safety net program (VGD Card, old age allowance, Female education scholarship, etc.) • Salary disbursement for support service personnel (Ansers/VDP, temporary/fixed term servicemen etc. Govt. contribution for teaching staffs) • Inland Remittance • Different payment systems like insurance, utility bills

13. Thank you