jhunjhunwala rural ict
TRANSCRIPT
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ashok Jhunjhunwala, IITM,
India, [email protected]
Enabling Rural Citizens through
Innovations in ICT
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How can they stand up and be counted?
How will they get access to resources, health and education?
How will they be able to compete?
How will they bridge the distance with their urbancounterparts or those in the developed world?
Over the last two hundred years, 4 billion people inthe developing world have been left behind
India was in this category in the recent past
Urban India has changed
will use it as an example to talk about what can be done
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India was struggling in eighties
One had to wait for eight years to get a telephone
Deposit money to get in a queue
To buy a two-wheeler took four years
Gas connection took even longer
Importing a simple $3 microprocessor IC took one year
Life was difficult
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Changing Indian Affordability:65M urban homes
21.2
15.8
12.8
5.8
3.22
0.8 0.9
0
5
10
15
20
25
100 180 260 360 520 840 1300 3500
Monthly Household income in $
NumberofHHinmillions
NosofHHinM
Monthly HH Income in $
0
5
10
15
20
25
30
2075
2001
2007
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Mobile Market in India boomed5 million 50 million 150 million 400 million
Not until Mobile Infrastructure Capex< Rs 3000 per line
and with handset price of Rs 1200 onwards
service available at 50 p per minute
ARPU of about Rs 250
7 million subscribers added each month 0
100
200
300
400
500
2003 2004 2005 2006 2007 2008 2009 2010
Year
ProjectedNosofSubscribersin
million
Just Like number of TVs in India rose from10 million to 100 million in 90s when
prices became Rs 1200 onwards and cableTV tariff fell below Rs 75 per month
Number of TV channels boomed
Entertainment industry in Indiaone of the biggest
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Even Airline Industry
Is booming in India quadrupled its passenger carrying capacity in two years
Average tariffs have fallen to a fourth making it affordableto middle class Indians
Inspite of rising petrol prices
The only limitation to growth is the airport infrastructure
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India on Move
Auto Sector is booming
R&D driven initiative: Scorpio and Tata-Indica
India emerging as leader in auto-component design and manufacturing
Indias cement plants in 90s virtually closed as they could not compete
Today India has some of the most energy efficient cement plants ofthe world
Electricity from wind energy surpasses its nuclear energy
Indias wind energy company is the fastest growing one in the world
Indian companies carrying out successful Drug discovery
Spends US$50-70M as opposed to US$800M for a drug
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Engineering Education
500K engineering students graduate every year from 1600engineering colleges
Up from 25,000 in 100 schools in early eighties
Uneven quality is a major problem
was foreseen and resulted in reluctance to expand
But it is this human resources which has driven growth
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Growth of IT and IT enabled services is legendary Reaching $50 billion this year
Trillion dollar IT Services industry being projected
The World is FlatBut you aint seen nothin yet
for the changes has not yet touched Rural India
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But Rural India is still struggling
637,000 villages, 700 million people
Per capita GDP about $200
Can ICT make a difference?Rural Priority is Education, Health and Livelihood
Politically
unsustainable
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Changing Indian Affordability:150M rural homes
NosofHHin
M
Monthly HH Income in $
0
10
20
30
40
50
60
70
80
2075
2001
2007
102.1
1710
3.9 1.9 1 0.3 0.3
0
20
40
60
80
100
120
60 180 260 360 520 840 1300 2240
HH Income in $ per month
NumberofHHinmillion
s
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All block headquarters are connected by optical fibre Most villages are within 15 Kms from Block towns
Last mile technologies are rapidly emerging
Broadband CorDECT WiLL developed at IITM, India provides a telephone line and 256 kbps Internet connection in 25 Km
radius Exchange and tower in town
Works at 55 C
Power requirement: 1 KW
start-up costs very low
Newer technologies emerging
Promising 1/2 Mbps connectivity
with OFDM (like 802.16 / WiMax)
with HDR and HSDPA
Fibre goes deep in India
Rs 10K per line deployedExchange and tower in town
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Rural Service Providers
aggregate demand into a kiosk
owned & driven by a local entrepreneur
Rs 50K per Kioskproviding telephone, Internet, multimedia PCwith web-camera, printer and power back-up for PC plus local language software, video conferencing software, trainingand
maintenance and 6 months unlimited Internet
set up by a village entrepreneur on the lines of urban PCOs Provides multiple services to break even
Needs Rs5K pm to break even
Innovative Business Models
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Rural ServicesAn Overview
Capacity Building Education Health
Income Generation Agriculture Entrepreneurship Outsourcing
Enabling Services Finance Markets (exchanges
/trading) e-Governance Water Management Energy Communications and
Transportation
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Education
Towards enabling Rural Areas.
3-(Rating carried out on 0 to 5 scale to indicatewhere India is)
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Education
Curriculum based
Passing SSLC: excellent results
Skill based
Spoken English
Computer Basics
CAD, Web development, Photoshop
Repair pumps, wire for electricity, carpentry
Concept based
Science and Business concepts
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Rural BPO
Towards enabling Rural Areas.
From London, Boston, NY
To Bangalore, Mumbai and Delhi
Then Jaipur, Mangalore, and Pune
Is it the turn of Shikrapur,Modaj and Mettupalliyam?2
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Audio
Recording &
EditingWeb &
MultimediaDevelopment
Translation
Desktop
Publishing
EngineeringServices
Administrative
Service
ITeS
Overview
11 Months
50 People
20 Villages
13 Clients
Services Provided
.In English and Regional Languages
Input 2D drawing Output 3D model
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Desi Crew
Rural BPO Services Administrative
Data Entry
Data Conversion
Localization (English toregional languages) Translation
Voice Over
Engineering
2D drafting 2D to 3D conversion
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Rural Production
Towards enabling Rural Areas.
As Chennai becomes the manufacturing
hub for Nokia and BMW
Can Pinjavakkam
become the production
hub for Chennai?
1-
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THE MODEL
Design Order
CLIENT
ROPE
RPC RPC RPC RPC
RPC LEADER RPC LEADER RPC LEADER RPC LEADER
RPC WORKERS RPC WORKERS RPC WORKERS RPC WORKERS
Visual Access toproduction Delivery of order
CLIENT CLIENTCLIENT
Order Skill Enhancement Quality Management
Infrastructure Working Capital Production Processes
FORCLIE
NT
FORLEADE
R
FO
RWORKERS
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RPO: Distributed Production enabled by Internet
Outsourcing production to rural areas
Kiosk becomes a point of co-ordination & qualitycontrol
The Crafts for Life projects include
Embroidery
Bags Soap
Banana Rope
Dry Flowers
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Training in making dried banana bark rope making facilitated by ICT entrepreneur Jayamalathi at
Thirupandrutti.
Building and Aggregating Distributed Rural Production
Units as back end for industries
Focus Sectors: Crafts, Leather, Garments, Agro
Processing
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PRODUCTS
Banana Fiber Table Mat Banana Fiber Window Blind
BF with Jute Placemat Bamboo Fiber Placemat Korai Grass Runners
R O P E
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Training & Recruitment: Industry Client
RTBI:Networking,Logistics & Monitoring Operation
ICT Kiosk: ICTInfrastructure and Marketing
Focus Sectors:
Security Personnel
Skilled Construction Workers
Sales persons
Home Service Agents
Vocational Training
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Healthcare
Towards enabling Rural Areas.
1+Telemedicine:
Initial experiments with eye care and with Veterinary doctorsusing the video conferencing tool
Moved on to video-consulting for GP & gynecology problems
Vet care with Veterinary collegeRemote Eye Care with Aravind Hospitals
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ReMeDi Tele-medicine solutionHealthcare Delivery
Identification of village healthcare delivery centers
Linkage with a hospital partner via ReMeDitelemedicine solution
Supply and delivery of essential medicines
KioskOperator
PharmaCompanies
ReMeDi Telemedicine Kit
LocalPartnerHosp
RP RP RP RP
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Agriculture
Towards enabling Rural Areas.
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Managing Risks for farmers
Crop disease: Use of video conferencing to connect farmerto an agricultural Expert
Obtaining answers before it is too late
AfterBefore
In a Village in Madurai,the Ladys Finger
(Okra) crop
was turningwhite
The problem wassent to the experts at
the Department ofRural Extension,
Madurai AgriculturalCollege and Research
Centre whodiagnosed it asYellow Mosaic
disease
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Production and Price Risk Coverage
Rain-fall insurance
Micro-weather Measurement and prediction
Collect weather data at each village
Temperature, humidity, pressure, wind speed,wind direction and rainfall
Weather Monitoring Kit : Rs 15K
Market risk: use of commodity exchanges
forward pricing and Options Can one get small farmers to use it?
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Agriculture
Agro Processing
Agricultural Advisory Services
Agricultural Supply Chain Management
Focus: Fruits and Vegetables in Theni District of Tamil Nadu
Strategy: To link markets, banks, extension partners and suppliersto small farmers
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Facilitate Sales and post-harvest support
Use of Village Internet kiosk and mobile phones for
Obtaining market-prices in different Markets
Transaction and deal-closing from villages
Scheduling delivery
Booking of transport
Direct payment through banks and loan repayment
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Financial Services
Towards enabling Rural Areas.
1
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Financing by banks from towns is expensive
Is Microfinance the answer
Has made great strides, but what is the interest rate? At 24 to 30% interest rate it is good loan for
Trading and Short term consumption loans
But not for any manufacturing / agriculture?
Can kiosks become mini-banks? Internet banking: But how will cash be delivered?
Can kiosks carry out credit-rating of rural people?
What about Insurance? Can they enable different kinds of insurance?
Life Insurance, health insurance, General Insurance, rainfall insurance
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We could put Internet in every village but for its cost?
TeNeT / VorTex develops ATM
Finger print detection
Internet kiosk based or Stand alone
Deliver even soiled notes
Single denomination today
Can be extended to multiple denomination
Electronic Lock operated using finger print detection
Cost about Rs 60K for kiosk ATM / Rs 75K for stand
alone
Vortex GramaTellerinitiative, reducingthe cost of ATM to 1/15th
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Towards Credit Rating
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Rural Business, Transportation, Energy & others
Towards enabling Rural Areas.
0+
R l B i
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Rural Businesses
Agriculture, food processing & other small businesses
Can they be enabled by ICT kiosks?
Does technology play a significant role in supply chain management
& co-ordination?
Can they be used for market linkages & pricing mechanisms?
Can kiosks be used to find jobs?
Exploring to understand the evolution of rural businesses
and the role of technology in such businesses
D li d E
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Decentralized Energy
Grid based Power Supply
Quality and availability
Urban Power will take precedence
Rural India will only get overflow
Each Village require 30 KW to 100 KW Power Generation
Solar
Biomass Combustion
Biogas
Bio-diesel
Can kiosk be used to enable this?
C i O i d S i
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Community Oriented Services
Rural Development programs
Water Management
Soil Management
Road construction
Social harmony and religious tolerance
Promoting entrepreneurship
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To Sum Up
Towards enabling Rural Areas.
ICT can provide opportunities for those whohave been left behind
to leapfrog
provided there is will
Requires
Confidence, Local technologies & Servicesand lots of hard work
Rural Areas in emerging Markets can followtheir urban counterpart
T d
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Today
India consumes
Less than one twentieth of per capita resource as compared to that inthe West
as per International Energy Agency Statistics Division, India consumed512.4 Kg of oil equivalent of energy per person as opposed to 7794 Kgof oil equivalent per person in USA in 2003
If India and China grow like West?
And their per capita resource consumption of 1.4 billion Chineseand 1.1 billion Indians reach the level in the West
This can not be our future Nature is already retaliating
Technology can help but cant support consumption beyond a point
A dil
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A dilemma
India and China can not be asked to wait to get outof their deprived state
AND they can not grow and acquire the samelifestyle as that of the West
N d
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Need
To redefine development
Not accept the industrial revolution Development paradigm
Technology can find all the answers
Urban life is better life
Good life need not imply
Such large consumption
Migrating Rural Indians to Urban areas is not the answer
With health, education, a bit of infrastructure and livelihoodopportunity, life in Rural India may be better than in urban areas
U b I di d Chi h d ll
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Urban India and China has done well
Growth in China stupendous
India started late, but is racing today
But most growth limited to urban areas
Rural Areas are being left behind
700M out of 1 B people live in Rural India