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Providing Commercial Internet connections in Rural India Towards Rural Wealth Generation Prof. Ashok Jhunjhunwala, IITM, Chennai, India [email protected] Rural India has 700 million people in 600,000+ villages (about 1000 people per village with per-capita income of Rs 20 per day) per capita GDP of Rs 10000 per year Number of HH in millions 120 135 million rural households 102.1 100 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 18 26 42 65 112 0 3 9 13 Can it bring to them health & Education Can it significantly enhance their incomes? HH Incom e in thousand Rs/m onth TeNeT Group, IITM Feb 04 2 Can IT and Internet help? Can these Rural areas even afford Connections? Can they afford computers? and how would Internet help in health, education and income generation? can this scale to all the villages in India To Scale Technology Sustainable Business Model Organisation which thinks and acts Rural TeNeT Group, IITM Feb 04 3 Innovative Technology to connect Rural India BSNL (state owned incumbent) has fibre connectivity to most Talukas (county hq) CorDECT Wireless in Local Loop developed at IITM, India provides a telephone line and Internet connection in a 30 Km radius can connect 85% of Indian villages start-up costs very low To PSTN To Internet 35/70 kbps Internet plus simultaneous telephone • Rs 7000 per line price •1 million lines being deployed TeNeT Group, IITM Feb 04 4 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 Feb 04 5 Innovative Business Models n-Logue : A Rural Service Provider aggregate demand into a kiosk owned & driven by a local entrepreneur Rs 50000 (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 100 per day to break even (Rs 3 per person per month) TeNeT Group, IITM Feb 04 6 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 TeNeT Group, IITM Feb 04 8 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 Feb 04 Tele-medicine Vet Care E-learning E-Agriculture 9 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 Feb 04 10 Saving Crops and Agri-consultancy Before In a Village in Madurai, the Lady’s Finger (Okra) crop was turning white The problem was sent to the experts at the Department of Rural Extension, Madurai Agricultural College and Research Centre who diagnosed it as “Yellow Mosaic disease” After Saving to farmer - Rs 160,000 Cost of Information - Rs 40 TeNeT Group, IITM Feb 04 11 Palaniammal’s eyes… A 60 year old from a village near Melur Photographs by an ordinary web camera: Remote feedback given by Aravind Eye hospital TeNeT Group, IITM Feb 04 12 An Online Clinic … Group, IITM 04 *DrTeNeT Mala Fenn is a leading Gynecologist inFeb Madurai 13 Web- Durbar: DM talks to multiple villages on video TeNeT Group, IITM Feb 04 14 Inter-village singing competition TeNeT Group, IITM Feb 04 15 Rural Children create computer drawings for greeting cards TeNeT Group, IITM Feb 04 16 All drawn on a PC TeNeT Group, IITM Feb 04 17 Market Research Collecting Data from the Villages TeNeT Group, IITM Feb 04 18 TeNeT Group, IITM Feb 04 19 • Payment of • Municipal taxes • Electricity Bills • Bus Tickets • Purchase of Seeds / Fertilisers • Entrance and Exam Fees E-government services at a Village Net Banking From Central Website • Distribution of Application Forms • Information from Online Databases like • BPL lists • Electoral Lists, etc Physical Dispersal VILLAGE KIOSK • Dispersal of • PDS coupons • Application forms for exams, etc Information Dissemination • Text, Audio, Video formats of various Government / Public service Announcements • Video-conferencing between Collector and villagers • Physical Notice Board outside Kiosk on which Govt. Notices can be pasted TeNeT Group, IITM Feb 04 20 Rural Micro-Enterprises are the Wealth Creators Micro-enterprises need Finance Knowledge and Training Buying & Selling Insurance Can Communications Enable these ? Agriculture Trade & Commerce Animal Husbandry IT-Based Services Agricultural Processing Industry TeNeT Group, IITM Feb 04 21 The Dream Current Rural GDP in India = Rs 700,000 Crore For a Population = 700 million people GDP / Person = Rs 10000 per year Rural Prosperity DOUBLING per-capita Rural GDP Rs 20000 per person per year TeNeT Group, IITM Feb 04 22 Operations Project Summary & Plans State Live Active Total TN 7 3 10 Maharashtra Gujarat Others Totals 6 1 5 19 8 15 1 27 14 16 6 46 Projected Breakup of Kiosks Plans 78 Projects by March 2004 800 Maharashtra: 30 TN: 25 Gujarat: 16 Others: 7 125 kiosk/project 3000 3500 2500 10000 kiosks by Jul-Sep 2004 TN TeNeT Group, IITM Feb 04 Gujarat Maharashtra Others 23 Technologies & people behind n-Logue Technologies in Use corDECT WiLL Midas will enable 100/200 dedicated and 2 Mbps shared connection next year RAS & Router Banyan Minnow ISP in a box Nilgiri Billing System Nilgiri Network Management NMSWorks Chirag voice/video mail TeNeT Indian Language Office package CK TeNeT Group, IITM Feb 04 25 corDECT Wireless in Local Loop IITM - Midas To PSTN To Internet 35/70 kbps dedicated Always-on Internet plus simultaneous telephone TeNeT Group, IITM Feb 04 100/200 kbps dedicated & 2Mbps shared connection in near future Price target: Rs 5K - 7K per line 802.16 in future 26 Office package in Indian Languages IITM - Chennai Kavigal Major New Initiatives Multi-party multi-rate video conferencing Live Lecture Rural ATM Machine Finger print detection Medical Diagnostic kit LCD projection system Web Terminal MeTeL Entertainment Terminal Rural Banking SW On-line eye-testing Sparse Area Comm System OOPS OOPS Vortex HP-IITM Neurosynaptics TeNeT Midas TeNeT TeNeT HP-IITM TeNeT TeNeT faculty and 10 companies incubated by it (1000 engineers) working to make the dream true TeNeT Group, IITM Feb 04 28 Low bit-rate multi-party Video Conferencing (audio + video + chat at 20 kbps onwards) On-line lecturing at low bit-rates TeNeT Group, IITM Feb 04 IITM - OOPS 29 Financial Services with ICICI Bank IITM-Vortex Kiosk operators to have Credit cards Collect cash from villager and pay online Govt. payments, Telephone bills Kiosk operator to be an agent for agri-crop loans Rural Insurance, Health and Crop Rural low cost ATMs at kiosks Works along with the PC already existing Breakthrough pricing envisaged of Rs 40000 TeNeT Group, IITM Feb 04 30 IITM - NeuroSynaptic Remote Monitoring of patient’s health using wireless A kit consisting of BP, Temperature, ECG measurement and Stethoscope for Rs 10K 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 • 8-10 voice channels + 64/128 kbps Internet satellite backhaul Internet • Each hub supports 16 to 20 remote sites with 2 Mbps download • Rs 7K corDECT + Rs 10K backhaul cost per connection TeNeT Group, IITM Feb 04 32 To Sum Up Technologies can impact lives provided there is a big enough Vision behind it Dream of Doubling per capita Rural GDP Finance, Commerce, Training & Information are key Driving Education, Health and Entrepreneurship is the means Wireless Internet with fibre backhaul can enable these Sparse Areas will require special technologies & efforts Large number of innovative technologies and applications need to be developed catering specifically to Rural areas TeNeT Group, IITM Feb 04 33