Transcript Rural Jul04
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
[email protected]
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
TeNeT Group, IITM
July 04, Japan
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Rural Population of Developing
Countries is 3.5 billion
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)
Number of HH in millions
120
102.1
135 million rural households
100
Can technologies make a
significant difference in life of
such people?
80
60
40
17
20
10
3.9
1.9
1
0.3
0.3
360
520
840
1300
2240
0
60
180
260
Health & Education and it
significant enhancement of
their incomes
And can they afford these
technologies?
HH Incom e in $ per m onth
TeNeT Group, IITM
July 04, Japan
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To Scale to all the villages in India
One needs
Technology
Sustainable Business Model
Organisation which thinks and acts Rural
TeNeT Group, IITM
July 04, Japan
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Connectivity
Leveraging Public Contribution
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
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
To PSTN
To Internet
$ 200 per line deployed cost
(including towers and mast)
•1 million lines being deployed
TeNeT Group, IITM
July 04, Japan
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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
TeNeT Group, IITM
July 04, Japan
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IITM - ISRO
Sparse Area Communications
where there is no fibre backbone
3.8 m antenna
2.4 m antenna
15 -25 Kms with 50 connections
PSTN
Internet
• 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
Sustainable Business Models
with such low affordability how will the business scale?
Existing Businesses have declared this unviable
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 incomes
less than $ 1/day, aggregate demand
and let Entrepreneurs drive it
Aid/ Grant does not scale
Successful Enterprises can scale to all villages
TeNeT Group, IITM
July 04, Japan
11
Innovative Business Models
n-Logue : A Rural Service Provider
aggregate demand into a kiosk
owned & driven by a local entrepreneur
$1000 (including taxes) per Kiosk providing 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)
TeNeT Group, IITM
July 04, Japan
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Application &
Solution
Providers
Internet Backbone
School/PHC
Private Business
Government Office
Rural NGO
Provides Training and Technical Support
Handles Licensing and Policy issues
Provides Internet Backbone Connectivity
Enables Kiosk Services through Alliance Partners
Creates Awareness
ACCESS
CENTRE
Scope:
3000 sq km
400-600 connections
(1 in each village)
Local Service Partner
Financing
Markets Connections
Provides Onsite Support and Training
Manages Local Web & Email Services
Manages Local Content Pages
Provides Internet Access to Local Community
Provides Awareness and Training
Channels Information needs of Community through
LSP to Application & Content Providers
Internet Kiosk Operator
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
Kiosk: Bouquet of Services (besides
telephony)
Learning typing
Computer education
Photography
movies on CD
DTP work
Email/voice & video mail
E-Government
Video conferencing
providing
TeNeT Group, IITM
July 04, Japan
Tele-medicine
Vet Care
E-learning
E-Agriculture
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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 .
•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
TeNeT Group, IITM
July 04, Japan
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TeNeT Group, IITM
July 04, Japan
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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
TeNeT Group, IITM
July 04, Japan
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