Volume 15, No. 2, November 2005
Divya Tewari
Centre for e-Governance, Indian Institute of Management, Ahmedabad
divya@iimahd.ernet.in
Field trip was organized as a part of the course on Deploying Information and Communication Technology for Development, offered to the Final year students of Post - Graduate Program in Agri-business Management of Indian Institute of Management Ahmedabad, India. The objective was to get a first hand experience of the reach and penetration of the information and communication technology (ICT) in small towns and rural areas. On this tour, we visited 3 village kiosks and an Access Center (central hub for connectivity) in the rural interiors of Gujarat. Through our day's visit, we tried to catch a glimpse of the kind of life people live in these villages, their occupations, their needs and requirements and the role that the technology can play in facilitating a better life to them. These rural Kiosks are a step towards bridging the digital divide that exists between the cyber cities of India and the remote interiors that are devoid of even the most basic amenities.
Kiosks as information centers are gaining a momentum in rural and semi-urban areas of India. Information in the areas of agricultural production and trade; animal husbandry, education, banking, medicine, rural employment and delivery of e-government services can be accessed from these Kiosks. The information that is displayed on the screen is in Hindi, or other regional languages, depending on the location of the tele-center.
n-Logue, a company set up by academics in IIT Madras, is establishing a network of Kiosks in various parts of Gujarat in partnership with local entrepreneurs. In association with Analog Devices, TeNeT group at IIT Madras has developed a wireless local loop technology, called corDect. It provides a bandwidth of 70 Kbps to allow for simultaneous telephone and internet connection. The DECT Interface Unit (DIU) is a fully redundant subscriber radio exchange. The Compact Base Station (CBS) provides the connection to the subscriber. It is connected to the DIU through 3 pairs of twisted pair copper wires. The DIU feeds both power and signal to the CBS. A DIU can be connected to up to 20 CBS. Wall Set with Internet Port (WS-IP) is the end users' interface. The PC establishes an Internet connection using a standard dial-up utility. This means that voice and Internet can be used simultaneously. The Wall Set can be connected to the DIU through Compact Base Stations (CBS) for distances up to 10Km. corDect technology has been designed to provide a low cost internet connectivity to the users in the rural areas.
n-Logue operates through a 3-tier franchise business model. While the company takes care of the technological and regulatory issues and managing loans from the financial institutions, its Local service Partners (LSPs) take the responsibility of setting up the Access Centers and recruiting, providing training, support and technical assistance to the Local Entrepreneurs (Kiosk operators). These Kiosk operators are ultimately responsible for providing the front line service to the customers. In a way, the success of the entire venture becomes contingent on hiring and retaining the right talent at the local level. A Kiosk operator on an average earns something between Rs.3000/- to Rs.7000/- per month. n-Logue earns its revenues basically through the agency and the set up fees paid by the LSPs and through the annual franchise fees of Rs.60,000/- and Rs.1000 per month after first 6 months from the Kiosk operators. n-Logue, reaches the villages through its brand name "Chirag", meaning enlightenment.
We were a group of 18 members, on our trip to the rural tele-centers of Mehsana, 90 Kms. north of Ahmedabad. We had Sanjay Inamdar with us from n-Logue, as the primary organizer of this field trip. It took us almost one and a half-hours to really move into the panoramic greenery of the cotton fields and tobacco plants of rural Gujarat. In the bus, the students were humming popular Hindi tunes in loud, cheerful voice. Sanjay Inamdar shared some valuable insights with us regarding rural tele-centers in India and n-Logue: "corDECT technology is our unique selling proposition. It is suitable for rural environment because it does not require much maintenance. We can provide it to our subscribers at an affordable cost".
After riding for at least another hour, we reached Visnagar, where the Access Center is located. The building was still under construction. The Access Center is set up by the Local Service Partners (LSP) of n-Logue to provide Internet and telephone access to the Kiosks operating in a radius of 30 Kms. In this case, all the 3 Kiosks where we were to visit, Ladol, Govindpur and Vijapur, were connected through the Access Center at Visnagar. The most visual part of the Access Center was a tall antenna on top of the building. The technician at this place showed and explained to us the components and functionality of the corDect wireless Access System.
The corDECT air interface supports 10 km of line-of-sight connectivity and has the provision to extend this to 25 km using Repeaters. n-Logue gets its telephone connectivity and internet facilities through BSNL and Satyam Infoway (though it is on its way to negotiate terms with reliance). The Access Center also has a Software to bill customers on a monthly basis and track the payments.
The
Kiosk at Ladol
Our next destination was Ladol. With a population of 10,000, Ladol was more like a small town with shops on both sides of the road. It was around 11:30 in the morning. The kiosk at Ladol had not opened yet. We utilised our time in developing some acquaintance with the local residents. It was an agrarian village, cultivating mainly cash crops like potato, chilly and cotton. Tobacco was processed and sold by way of agricultural trading. We visited a well-to-do shopkeeper nearby, who also happened to own a computer for maintaining his accounts. We inquired if he had ever visited the Chirag tele-center for accessing Internet or digital photography. He seemed to be unaware of such facilities being offered in the close vicinity. But he mentioned the availability of computers (almost 15 to 16 in number) in the schools in the village. We approached another shopkeeper and wanted to know if he had ever used a computerized horoscope. "We would rather depend on our pundit (the local priest) for any astrological prediction, than a machine", was his immediate response. We saw the need for greater awareness among the common people about usefulness of computer in their daily needs.
The Chirag center at Ladol was situated in a small room, with three computers, a printer and a digital camera. This was very unlike the cyber cafés with their state of the art décor, which we are used to. We made our way through a swarm of excited children. Our visit had also given them an opportunity to peep inside the Center, experiment with the mouse, meddle with the system and touch anything within their reach. They were curious to find a clue of our visit to the Chirag Center. We were amazed to know that the kiosk operator was a Post - Graduate in Commerce. He made most of his income from the digital photography and training the students in English speaking and computer applications. He also worked on contract for Gram Panchayat and the local branch of Punjab National Bank. The other better doing Kiosks in the nearby area had outsourced this work to him. Through this work, the kiosk operator had been able to add 2 more Computers to the one that had been supplied by n-Logue. Overall the business seemed promising here. However, the fact remains that there was a general lack of awareness regarding internet accessibility and IT enabled services. The farmers using Internet to get local mandi trends and prices is still a distant reality.
Our second destination, Govindpur, had a population of 5,000, but a literacy rate of only 20%. This was more like a traditional village where we could see some cattle grazing in the nearby fields while a few others resting under a shady tree. This was one of the privileged 'NRI' villages of Gujarat. A large population of this village lived abroad. The village on the whole exhibited affluence. The houses were cemented and the floors were well polished.
Set in the living room of a comfortable two-storied house, the Chirag Mahiti Kendra in Govindpur is used mainly for educational purpose. "We train the students here in MS Office and in accessing Internet sites. They are mostly in the age group of 15 - 25 years", informed Narendra, the Kiosk operator at this Center. Narendra, was a post-graduate and was undergoing a training to be a teacher. About 25 users visit this Center on an average day. Astrological predictions is another service which draws a few customers. The business otherwise remains luke-warm here. Sending e-mails via internet to communicate and correspond with people living far-off is still to gain popularity, despite having a large scope for it. There were some instances of internet to telephony but even this was not a common practice. Opened 3 to 4 months back with an initial investment of Rs.60000, the Kiosk here hardly generates an income of Rs.3500/- to 4000/- to the operator. The apparent reasons can be the small size of the village and the mild business approach on the part of the Kiosk Operator.
Narendra (left), the Kiosk Operator at Govindpur
However, the dexterity in the hand movements of Narendra, the Kiosk Operator at Govindpur, in using the mouse or giving keyboard commands, was way beyond our expectations. It made us aware of the fact that the barriers to technology were considerably low even in the remote areas. Another thing that took us by surprise was that popular Bollywood cinema was not played at these centers, despite having a good potential for revenue generation. Instead bhajans or devotional songs were a preferred mode of social entertainment. Narendra explained to us: "Undisciplined entertainment from the movies might corrupt the academic environment of teaching and learning". Foregoing the lure of making easy money to uphold social commitments is commendable.
The tele-center at Vijapur was 50 kilometers from Mehsana. Vijapur is a Taluka, with a population of 50,000. (A Taluka is an administrative and geographical block consisting of an average of 80-100 contiguous villages.) We again stepped off the bus and walked for almost a kilometer to reach the kiosk. However, the place was amazingly clean with the resemblance of a semi-urban development. Here we met a dynamic and thriving entrepreneur, Chatur Bhai.
The Kiosk at Vijapur had been in operation for past six months. In this duration Chatur Bhai has been able to add 3 more Computers and a laser printer to what had originally been supplied by n-Louge to him. His claimed earnings come somewhere around Rs.1000/- per day. However, it was not easy for us to accept this claim as we had not come across a single customer at any of the kiosks so far. Perhaps a Saturday meant a non-business day in the area. We shared our concern with Chatuur Bhai, which he responded to by showing his logbook.
Chatur Bhai basically provides services at three levels. The most basic is using the desktop and other peripheral devices. Secondly he provides information via internet and third is training. He has been brilliant in figuring out some innovative usage of the internet connectivity. When the local newspaper photographer struggled to post his news items through a quick means, Chatur Bhai came up with the idea of sending it as a mail attachment. He garners additional income by providing online railway reservations and Internet to phone connectivity which is mostly to USA. Chatur Bhai has also been able to broaden his customer base by providing the internet accessibility to the end customers at a contrastingly low rate as compared to his local competitors. Printing of property documents and PDC Certificates (a school leaving certificate), documentation work for Banks, also add to his income. He trains the rest of the operators in the area in basic applications of computer and video conferencing software, and accessing Internet, as a Caretaker operator. This work has been outsourced to him by the LSPs. In his turn, he also outsources a part of his business to his fellow Kiosk Operators when there is a great rush of work.
Impressions and reflections
As we discussed and analyzed our interaction with the 3 Kiosk operators on our field trip, we realized that locating the right talent for the Kiosk operator is the most critical factor for success. Like Chatur Bhai at Vijapur center, he should be a multi tasker with a quick eye to spot opportunities for business within (and across, if an opportunity presents itself) local networks. Customizing the technology and content to match the local needs and developing a local entrepreneurial base is another important feature. The information presented through local language software and content pertaining to education and training and commercial activities like Astrological predictions, e-mail and web browsing, off-line services and digital photography has to some extent provided a push to the rural development.
Employing/deploying a relatively low cost technology suited for the specific purpose of developing the required network is another critical component. This ensures reasonable bandwidth and quality of connectivity along with keeping the price structure under control. The barriers to the use of technology too are low (this was what we discovered through our trip) coupled with a strong demand for network connectivity in rural areas. Despite a limited use of Internet, there is viability on the basis of services with not much difference from what is demanded and provided in the urban areas.
The feasibility of the entire operation depends on the profitability of the tele-centers as well as n-Logue; maintaining the relationship between the front end and the back end partners; and providing the access to information and relevant content through Internet to the end user at a reasonably affordable price.
Innovative attempts and experiments in rural connectivity through the Kiosks we visited, gain special importance given the fact that Internet connectivity is still confined mostly to the large cities. But in order to make the applications of e-Governance and regular weather information, crop prices, and best-practice farming techniques in agriculture to become an every day reality, we need to put in more concrete efforts.
Way Ahead…
To step towards building a knowledge society, to provide the farmers an e-commerce platform, or to enable the rural youth applying for jobs through internet portals, the penetration and viability of these Kiosks will have to be enhanced. The factors that can contribute in a major way are:
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Research and development in the field of rural connectivity.
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Investment and funding for the rural Kiosks through Grameen/National Banks, NGOs and other private enterprises.
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The demand for the services are dispersed in the rural areas, which needs to be anticipated and addressed.
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Aggregating the e-commerce needs of the rural users.
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Working to ensure the viability of the project by bringing the socio - political, economic and technological components in close harmony.
Our journey to rural tele-centers gave us an insight into real problems and a challenge to come up with real solutions. It might be difficult, but an attempt has been made to bring an entire gamut of people into technological mainstream who have till now been on the peripheries.