jhunjhunwala rural ict

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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    Education

    Towards enabling Rural Areas.

    3-(Rating carried out on 0 to 5 scale to indicatewhere India is)

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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    Agriculture

    Towards enabling Rural Areas.

    1-

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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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    Financial Services

    Towards enabling Rural Areas.

    1

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    IIT Madras

    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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    IIT Madras

    Rural Business, Transportation, Energy & others

    Towards enabling Rural Areas.

    0+

    R l B i

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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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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    IIT Madras

    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