1. PC Kiosk Trends in Rural India Kentaro Toyama 1 Karishma Kiri 1 Deepak Menon 1 Joyojeet Pal 2 Suneet Sethi 1 Janaki Srinivasan 3 1 Microsoft 2 University of California Berkeley 3 Indian Institute of Information Technology Policy Options and Models for Bridging Digital Divides Tampere, FinlandMarch 14, 2005

2. What is a rural kiosk? A shop or community center in a rural village equipped with one or more Internet-connected PCs.

4. Data sources: Literature in journals, books, web sites, whitepapers Literature in journals, books, web sites, whitepapers In-depth interviews with kiosk agencies (Drishtee, n-Logue) In-depth interviews with kiosk agencies (Drishtee, n-Logue) Discussions with third-party observers (academia, gov’t) Discussions with third-party observers (academia, gov’t) Over 30 site visits in India and Africa (Akshaya, Drishtee, ITC e-choupal, MSSRF, n-Logue, …) Over 30 site visits in India and Africa (Akshaya, Drishtee, ITC e-choupal, MSSRF, n-Logue, …) Ethnographic studies Ethnographic studies Kiosk surveys Kiosk surveys What we’ve looked at so far…

6. The Survey Goal: to understand rural kiosk operation from a business perspective Three types of questionnaires for each kiosk: Three types of questionnaires for each kiosk: –A: Village baseline, one time only –B: Operator, 1 per kiosk, recurring –C: Customers, 5 per kiosk, recurring Translated to local languages Translated to local languages Delivered orally Delivered orally N-Logue N-Logue –150 villages –Recurring questionnaires every 3 months –Over 2 years Drishtee Drishtee –Two sets of 75 villages each –Recurring questionnaires every 6 months –Over 2 years 2 surveys completed, 3 rd begun 2 surveys completed, 3 rd begun

7. Sample Questions Kiosk operator Kiosk operator –Demographics  Main source of income? –Kiosk operation  What services offered? –Customers  How many customers do you see per day? –Miscellaneous  Would you consider opening another kiosk? Kiosk customer Kiosk customer –Demographics  Your profession? –Spending habits  How much do you spend on food per month? –Kiosk usage  How often do you visit?  What services do you use?

8. Findings Predominant customers are students and unemployed youth Predominant customers are students and unemployed youth –Customer survey capped at 2 students out of 5 per kiosk

9. Findings Kiosk customers almost always reflect gender of operator Kiosk customers almost always reflect gender of operator

10. Findings Word-of-mouth critical for spreading use Word-of-mouth critical for spreading use –First usage for >60% based on word of mouth, in spite of marketing efforts in village

11. Findings Kiosk customers not necessarily PC literate Kiosk customers not necessarily PC literate –70% of customers never touch the PC (operator mediates)

12. Findings Top services: computer skills education, entertainment, e-government, desktop publishing Top services: computer skills education, entertainment, e-government, desktop publishing

13. Findings Average monthly kiosk revenue not enough to sustain Average monthly kiosk revenue not enough to sustain –Required: between Rs. 3500-6000 per month (€ 50-85) –Current mean and median: Rs. 2000

14. Villages that can sustain a connected PC Income Literacy & education Knowledge- based needs Infrastructure Economies of scale (population) Villages that cannot sustain a connected PC

15. Villages that can sustain a connected PC Income Literacy & education Knowledge- based needs Infrastructure Villages that cannot sustain a connected PC Focus on Sustainability Economies of scale (population)

16. Villages that can sustain a connected PC Villages that cannot sustain a connected PC Income Literacy & education Knowledge- based needs Infrastructure Focus on Development Economies of scale (population)

17. Bridging the Digital Divide? Other possible models for IT in development: Non-PC computing platforms Non-PC computing platforms PCs for village administration PCs for village administration Government-subsidized kiosks Government-subsidized kiosks Rural business process outsourcing (BPO) Rural business process outsourcing (BPO) Computers in schools Computers in schools IT for existing non-IT development projects IT for existing non-IT development projects Etc. Etc.

18. Thank you!

20. Backup Slides

21. Common Applications Applications: E-agriculture E-agriculture E-government E-government Computer training Computer training Telemedicine Telemedicine VoIP, chat, e-mail VoIP, chat, e-mail Etc. Etc.

22. Successful PC kiosks may not be about the PC. Some non-IT functions: Cooking classes Cooking classes Public announcement system Public announcement system Phone service Phone service Etc. Etc.

23. The kiosk operator can make or break the kiosk. Operators need business skills, computer skills, entrepreneurial ability Operators need business skills, computer skills, entrepreneurial ability Careful selection of kiosk operator important Careful selection of kiosk operator important Training and follow-up critical Training and follow-up critical

24. Spending habits All segments spend equal on various basic necessities All segments spend equal on various basic necessities Monthly spent on kiosk by most of the segments is between Rs. 14 - 20 ($.30 -.45) which is.37% of the total monthly HH income Monthly spent on kiosk by most of the segments is between Rs. 14 - 20 ($.30 -.45) which is.37% of the total monthly HH income Q. Please specify the approximate amount spend by you on each of the following? Sample size: 275

25. Kiosk revenue vs. other revenue The major source of income for most kiosk owners is not the kiosk Q. From the various income groups mentioned below, please select the one in which your monthly household income falls? Q. How much do you earn on an average every month from your kiosk Sample size: 150

26. Millionsof PCs Forrester’s projections for installed base of PCs worldwide Emerging markets to be responsible for 70% of growth in PC sales by 2010

27. VSAT for kiosk in Kodia, Madhya Pradeshn-Logue corDECT wireless tower

28. A5: Scaling to 600,000 villages (for India alone) ITC e-choupal would take… 600,000 villages 6 villages/day x 365 days/year  274 yrs Q: What are the challenges with rural kiosks?

29. Source: UN, 2003 2007 Source: United Nations, 2003 A: Yes, of course.

30. Rupees per month $400 a month! data from Vivek Dhawan’s Masters thesis (IIT-B)

31. Rupees per month data from Vivek Dhawan’s Masters thesis (IIT-B) Needed to break even: $70-140/mo.

32. A: $150? Q: What is the cheapest a PC could be, anyway? Disk: $40Power supply: $10 Memory: $10 for 100MB Processor: $20 Other silicon: $20 CRT display: $50 Keyboard/mouse: $10 courtesy of Chuck Thacker (who says closer to $250)

33. IIT-Madras/Midas Metel low-cost phone and e-mail device

34. HP Labs’s Script Mail for pen-based e-mail

35. LeapFrog LeapPad for healthcare education in Afghanistan

36. Rupees data from Vivek Dhawan’s Masters thesis (IIT-B)

37. Government-sponsored lunches at a school in Tamil Nadu A tractor and cart in Madhya Pradesh A well-water hand-pump in Madhya Pradesh Teachers in Karnataka