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Can Internet provide opportunity for the 5 billion unconnected in developing economies to leap-frog Part 1: Technology and Business Model Prof. Ashok Jhunjhunwala, IITM, Chennai, India ashok@tenet.res.in using Rural India as an example
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TeNeT Group, IITM July 04, Japan 2 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
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TeNeT Group, IITM July 04, Japan 3 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) 135 million rural households Can technologies make a significant difference in life of such people? Health & Education and it significant enhancement of their incomes And can they afford these technologies?
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TeNeT Group, IITM July 04, Japan 4 To Scale to all the villages in India One needs Technology Sustainable Business Model Organisation which thinks and acts Rural
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Connectivity
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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
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TeNeT Group, IITM July 04, Japan 7 Innovative Technology to connect Rural India To PSTN To Internet $ 200 per line deployed cost (including towers and mast) 1 million lines being deployed 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
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TeNeT Group, IITM July 04, Japan 8 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
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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 PSTN Internet 2.4 m antenna 3.8 m antenna 15 -25 Kms with 50 connections 2 Mbps --> 128 Kbps --> <-- 256 Kbps Sparse Area Communications where there is no fibre backbone IITM - ISRO
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Sustainable Business Models with such low affordability how will the business scale? Existing Businesses have declared this unviable
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TeNeT Group, IITM July 04, Japan 11 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
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TeNeT Group, IITM July 04, Japan 12 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) Innovative Business Models
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Provides Training and Technical Support Handles Licensing and Policy issues Provides Internet Backbone Connectivity Enables Kiosk Services through Alliance Partners Creates Awareness Application & Solution Providers Internet Backbone ACCESS CENTRE Local Service Partner Markets Connections Provides Onsite Support and Training Manages Local Web & Email Services Manages Local Content Pages Scope: 3000 sq km 400-600 connections (1 in each village) Internet Kiosk Operator School/PHC Private Business Government Office Rural NGO Provides Internet Access to Local Community Provides Awareness and Training Channels Information needs of Community through LSP to Application & Content Providers Financing
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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
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TeNeT Group, IITM July 04, Japan 15 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 Tele-medicine Vet Care E-learning E-Agriculture
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TeNeT Group, IITM July 04, Japan 16 The Vet is on the Net... 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 Rural Magic : The next few slides contain true stories which have “magically” impacted the lives of people in Indian villages.
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TeNeT Group, IITM July 04, Japan 17
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TeNeT Group, IITM July 04, Japan 18 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
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