Embed Size (px)
DESCRIPTION
Serving the next tier Market. Ashok Jhunjhunwala TeNeT Group, IIT Madras, Chennai, India [email protected]. The Next Tier India with a billion people is a large market. - PowerPoint PPT Presentation
Citation preview
TIE Talk, San Jose, May 03 2
The Next TierIndia with a billion people is a large market
21.2
15.8
12.8
5.83.2
2.00.8 0.3 0.6
0
5
10
15
20
25
80 150 220 290 420 630 1040 1560 3730
monthly household income in $
mil
lio
n h
ou
seh
old
s
but 60% of Urban households can spend under $6 /month on Telecom can service them only if per line CAPEX is less than $ 200
Monthly telecom expenditure (assuming 4% income can be spent on telecom) 3.2 6 8.8 12 17 25 42 62 150
TIE Talk, San Jose, May 03 3
TeNeT Group, IITM took up the challenge
Incubated/ supported a dozen plus product companies and worked with operators to drive down CAPEX
• Midas Communications Banyan Networks• NMSWorks Tejas Networks• Nilgiri Networks Chennai Kavigal• OOPS NeuroSynaptic• Jataayu Nextge• Benchmark Systems Indus technolgies• Usha Communications
Capex per line down from $ 600 per line three years ago to$350 per line can be driven below $ 200 in next three years
TIE Talk, San Jose, May 03 4
The Third TierRural Indian households can afford even less
102.1
17.010.0
3.9 1.9 1.0 0.3 0.30
20
40
60
80
100
120
80 150 220 290 420 630 1040 2510
monthly household income in $
mil
lio
n h
ou
seh
old
s
75% (119 million) households can spend barely $ 3.2 per month on telecom
Monthly telecom expenditure (assuming 4% income can be spent on telecom) 3.2 6 8.8 12 17 25 42 100
TIE Talk, San Jose, May 03 5
And Why ICT in Rural Areas?
Current Rural GDP in India = $ 130 billion
For a Population = 650 million people
GDP / Person = $ 200
DOUBLING Rural GDP
$ 400 / Person
Rural Prosperity
TIE Talk, San Jose, May 03 6
Agriculture
AnimalHusbandry
Agricultural Processing
Industry
IT-Based Services
Trade & Commerce
Rural Micro-Enterprises are the Wealth Creators
Micro-enterprises need Finance Knowledge and
Training Buying & Selling Insurance
Can Communications Enable these ?
TIE Talk, San Jose, May 03 7
n-Logue incubated to connect Rural India
India has 600,000+ villages 650 million people
Need Technology Sustainable Business Model Organisation which can think and act Rural
• Lower Connectivity Cost• Aggregate Demand
TIE Talk, San Jose, May 03 8
n-Logue uses innovative Technology to connect Rural India
To PSTN
To Internet35/70 kbps Internet plus simultaneous telephone
• $ 150 per line price
•1 million lines in 03-04
BSNL has fibre connectivity to most Talukas CorDECT WLL developed at IITM
• provides a telephone line and Internet connection in 30 Km radius
• can connect 85% of Indian villages• start-up costs very low
TIE Talk, San Jose, May 03 9
Aggregate Demand
Entrepreneur-driven telephone booths (STD PCOs) introduced in 1987
• night-time long distance charges reduced by a factor of 4
Today• 950,000 STD PCOs covering every street of smallest
town• generate 25 % of total telecom income• 300 million people use these PCOs
TIE Talk, San Jose, May 03 10
N-Logue : A Rural Service Provider aggregate demand into a kiosk using
$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
set up by a village entrepreneur on the line of STD PCOs• needs only $ 60 per month to break even
Organisations with Innovative Business Models
TIE Talk, San Jose, May 03 11
What is the monthly income?
STD PCO $ 20+ Children learn typing
all kinds of on-line and off-line education $ 10+ Kiosk is a photography shop $ 6
also a video parlour on weekend evenings $ 6 email and browsing
voice mail and video mail $ 10+ e-governance access
connect to taluka Government office for services $ 4 and much more
Word-processor in Indian Languages
TIE Talk, San Jose, May 03 13
Mundi . . . .
A 60 year old from a village near Melur had lost vision for 2 years through tie-up with Aravind
eye-care hospital, vision was restored in one eye
IITM trying to develop Remote Diagnostic tools Blood Pressure, Sugar & Iron, ECG
Monitor, stethoscope, Temperature at total cost of $ 200
TIE Talk, San Jose, May 03 14
Consultancy on Crop Disease
Top: Ladies Finger Diseased
with yellow mosaic Below : Post treatment
Savings of $ 3000 Cost of information $0:50
TIE Talk, San Jose, May 03 15
The Power of multi-party video communication
IITM - OOPS
Low bit-rate Video Conferencing (audio + video + text at 20 kbps and more)
TIE Talk, San Jose, May 03 16
TIE Talk, San Jose, May 03 17
Driving Enterprises in Rural Areas
Micro- Enterprise would require micro-finance and loans
• TeNeT and n-Logue working with ICICI Bank• Remote Bill Payment, Rural ATM, Micro-finance & Remittance
training and information commerce and trading
• coupled with a courier service for goods delivery
Insurance• small enterprises have limited risk taking abilities
