Commercial Internet Connectivity in every village - Towards Doubling Rural GDP in India
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Transcript of Commercial Internet Connectivity in every village - Towards Doubling Rural GDP in India
Commercial Internet Connectivity in every
village - Towards Doubling Rural GDP in India
Ashok JhunjhunwalaTeNeT Group, IIT Madras, Chennai, [email protected]
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The Dream
Current Rural GDP in India = $ 130 billion
For a Population = 650 million people
GDP / Person = $ 200
DOUBLING Rural GDP
$ 400 / Person
Rural Prosperity
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Agriculture
AnimalHusbandry
Agricultural Processing
Industry
IT-Based Services
Trade & Commerce
Rural Wheel of Prosperity - The Wealth Creators
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•Finance•Commerce•Training &
Information
Rural Wheel of Prosperity – The Enablers
Agriculture
AnimalHusbandry
Agricultural Processing
Industry
IT-Based Services
Trade & Commerce
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Agriculture
AnimalHusbandry
Agricultural Processing
Industry
IT-Based Services
Trade & Commerce
Enabling Finance, Commerce and Training and Information
The Key Enabler
is
Communications
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How does one connect Rural India
India has 600,000+ villages 650 million people
can Rural India afford Connections?
Need Technology Sustainable Business Model Organisation which can think and act Rural
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Income and Telecom Spend of Rural Indian households
102.1
17.010.0
3.9 1.9 1.0 0.3 0.30
20
40
60
80
100
120
80 150 220 290 420 630 1040 2510
monthly household income in $
mil
lio
n h
ou
seh
old
s
75% (119 million) households can spend barely $ 3.2 per month on telecom
Monthly telecom expenditure (assuming 4% income can be spent on telecom) 3.2 6 8.8 12 17 25 42 100
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How does one serve people with incomes of less than a dollar a day?
Lower Connectivity cost
Aggregate demand
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Lower Connectivity cost
CAPEX on telephone line in India was $ 600 plus barely two years ago required ARPU of $20 plus per month to break even
• affordable to barely two percent of Indian households
Innovative Technologies and better buying has reduced CAPEX to around $ 325 per line
• moving towards $ 200 per line enabling 50% of Indian homes to afford telecom
rural connectivity cost reduced from $1500 to about$ 300 per connection
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Technology to connect Rural India
BSNL’s Contribution: on the average one fibre connected rural exchange for every 150 sq km
• a wireless system with 10 km range at existing fibre connected exchange would cover 80 - 85% of villages in India
CorDECT Wireless in Local Loop developed by IITM and Midas Communications, Chennai
• provides a telephone line and Internet connection in 30 Km radius
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To PSTN
To Internet35/70 kbps Internet plus simultaneous telephone
• $ 150 per line price
•1 million lines in 03-04
IITM - Midas
corDECT Wireless in Local Loop
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Aggregate Demand
in 1987 less than 5% of urban households had telephones• 7 years wait for a telephone• coin-box street telephones did not work• long distance charges too high even for top income families
Entrepreneur-driven telephone booths (STD PCOs) introduced• night-time long distance charges reduced by a factor of 4
Today• 950,000 STD PCOs covering every street of smallest town• generate 25 % of total telecom income• 300 million people use these PCOs
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N-Logue : A Rural Service Provider aggregate demand into a kiosk using
• corDECT Wireless in Local Loop • ISP in a box : Minnow• Reliable power back-up
$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
set up by a village entrepreneur on the line of STD PCOs• needs only $ 60 per month to break even
Organisations with Innovative Business Models
n-Logue Deployment Strategy
Application & Content Providers
Telephone Backbone
Internet Backbone
Scope:•1 –3 Talukas•25 Km radius, 2000 sq km•4 – 500 K population•2 - 5 towns•300 -400 villages
LSP
Banks
ACCESS CENTRE
500 + Connections (at least 1 in each village)
Connections:•Individuals•Government
— schools and PHCs• Kiosks
$ 1000 / KioskKIOSK
OPERATOR
BanksMicro Finance Organisations
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What is the monthly income?
STD PCO $ 20+ Children learn typing
all kinds of on-line and off-line education $ 10+ Kiosk is a photography shop $ 6
also a video parlour on weekend evenings $ 6 email and browsing
voice mail and video mail $ 10+ e-governance access
connect to taluka Government office for services $ 4 and much more
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Word-processor in Indian Languages
Multi-lingual Office PackageIITM -
Chennai Kavigal
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Mundi . . . .
A 60 year old from a village near Melur had lost vision for 2 years through tie-up with Aravind
eye-care hospital, vision was restored in one eye
IITM trying to develop Remote Diagnostic tools Blood Pressure, Sugar & Iron, ECG
Monitor, stethoscope, Temperature at total cost of $ 200
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Consultancy on Crop Disease
Top: Ladies Finger Diseased
with yellow mosaic Below : Post treatment
Savings of $ 3000 Cost of information $0:50
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E- Dr Vet ?
In Attapati village , Priya’s chicken was limping
Photo sent to Veterinary college
Identified as Curled toe paralysis
Cost for process Earlier $ 4 This case $0:40
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The Power of multi-party video communication
IITM - OOPS
Low bit-rate Video Conferencing (audio + video + text at 20 kbps and more)
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Can Kiosks become Micro-banks?
TeNeT and n-Logue working with ICICI Bank Remote Bill Payment Rural ATM Micro-finance Remittance
Credit and Product Marketing is one of the biggest requirement of Rural India
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Knowledge and Training
Another Driver of Rural Prosperity Information Dissemination and Knowledge
Enhancement
Need a Virtual University in every Districtto enable this
Basic Structure would• Consist of a Central Hub • And Knowledge Extension Centres in every village
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The Extension Centre
• Virtual Extension of the University
• Located in Every Village
• Enhanced Village Internet Kiosk equipped with
•Computer(s)•Internet Connection•Web Camera and Multimedia
•Power backup•Local Language Software
• Run by a local person who is trained to facilitate the learning process
There will about 1000 such Extension Centres in Every
District
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To Sum Up
Doubling of Rural GDP will change India
Finance, Commerce, Training & Information are key
Wireless Internet can enable these
Internet in Rural Area is the key Infrastructure for a prosperous India
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N-Logue’s business model per Access Center
In a fully built-up situation per Access Center N-Logue’s Investment per Access Center: $ 60,000
• 400 kiosks per AC• Revenue per AC ($20 per month per kiosk) $ 8000
pm• common expenses (including Internet BW) $ 2000• LSP share $ 3000• n-Logue’s share $ 3000
n-Logue’ expense per AC $ 600 pm
• n-Logue’s gross revenue per year : $ 28,800