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
2
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
4
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
12
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
15
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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