Telecoms & IT For

Rural Development By

DR T.H. CHOWDARYDirector: Center for Telecom Management and Studies

Fellow: Tata Consultancy ServicesChairman: Pragna Bharati (intellect India )Former: Chairman & Managing Director

Videsh Sanchar Nigam Limited &Information Technology Advisor,

Government of Andhra PradeshT: +91(40) 6667-1191(O) 2784-6137& 2784-3121®

F: +91 (40) 6667-1111 hanuman.chowdary@tcs.com

Talk @ NIRD, HYD: 15 Dec 2012

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Vision to inspire & Realise the Potential of Inventions/Discoveries

• We will produce electricity so cheap that only the rich can afford to burn candles”

- Thomas Alva Edison: 1878• Ghar Ghar mein radio• Gaon Gaon mein telephone - 1978 (A radio in every home; a telephone in every villageWe will make telephoning cheaper than a post card) - Dr T.H.CHOWDARY - 1994

Haath Haath mein telephoneGaon Gaon mein Internet

(A telephone in everyone’s hand: an Internet kiosk in every village)-Dr T.H.CHOWDARY – 1997

to bridge the digital divide.

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IT for the Masses

Electric bulb by Thomas Alva Edison Inexpensive to be affordable by masses to enhance working time, motors, machines.Ford's Model “T” production belt car affordable to many revolutionised personal transportSteam engine on rails - A new transportation systemThe printing Press in the year 1439 by Gutenberg Dissemination of knowledge Libraries to bridge the knowledge divide

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Masses & Classes

• Masses:– Uneducated or less educated – Rural People– Urban Labouring (manual) people

• Classes– Educated, well-salaried– Businessmen– Professionals (knowledge workers)– Ruling Circles (Politicians), govt officials,

industrialists, Bankers– Security & Defence people

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IT for the Masses

Knowledge, the empowerer Education, the Leveller of inequality How masses & not the elite only benefit – S&T

dissemination

• Knowledge will forever govern ignorance and people who mean to be their own governors must arm themselves with the power which knowledge gives

– James Madison

(Inscription at the entrance to the Library of Congress

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4500

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1000 1200 1400 1600 1800 2000

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ce: A

ngus

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World GDP per Person, 1000=100

S & T for Wealth Creation

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World Population and the Poor

Year Population % of the Poor1820 1.1 billion 85%1980 5 billion 30%2000 6 billion 20%2007 6.5 bln 18%2012 70 bln 15%

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ICT Technology

Dematerialisation of information – Electronification, digitisation, paketisation, Compression, storage,(solid state devices –

CDs, Pen drives, Memory, Web-sites Transportation Telecom Networks Optical fibers Microwave Radio- Terrestrial, Satellite Internet

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ICTs Comprise of

• (Obsolete): Telegraph, telex, Fax?• Current: Telephones (mobiles: 3.5 bln & fixed phones 1.5 bln)

– PCs; Laptops; Internet– GPS.GIS; TV [Over the air & cable]– Radio [digital, FM]– LANs, WANs, MANs,-Wifi; WiMAX– Email – Optical Fiber Cable [undersea & underground]– Microwave Radio: Satellite & Terrestrial

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Affordability of Electronic Devices:Ratio of Price of Device to Per Capita Income

in India

1951 1974 1994 2007 2010

Radio 2 0.5 0.02 0.005 0.005

TV Set NA 1.9 1.2 0.37 0.25Year's Telephone Service 2.5 1 1 0.12 0.08

PC 6 0.75 0.4

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Urbanisation & Development

Rural Population Developed Developing

( 5 to 10)% (50 to 70)%

• Contribution of

Agriculture to GDP < 5% (20 to 50)%*• % Labour engaged

in Agri-related work < 5% upto 60 *15% in China and 18% in India

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Urban/Rural Incomes in India

• 70% of population is Rural; 65% of workforce in Agriculture

• Contribution of Ag to GDP-(28% in 9th plan)• PCI of Rural people $ 300 (Rs. 16,500) • PCI of Urban people $ 2400 (Rs. 1,30,000)• What a disparity?• In China disparity is even more • Economic Development –Moral Consequences

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The Various Divides

• Urban-Rural• The Rich-Poor• Educated-Illiterate• Landed-Landless• Protected Water; Houses; Electricity • Telephone - (the Missing Link)

• The Digital Divide

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In the Information/Knowledge-Intensive Age &Societies

• Information is power• Extended markets/global reach

vendors/traders/consumers• Marketisation of all activity• Less transaction costs• Work from anywhere over Telecoms• Illiterate, but industrious masses are also

voters, skilled & producers of value

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Reaching the Rural Areas

Connectivity: • Capital cost of Road: $ 300/600,000 per km.• Optical Fiber or

Photonic highways : $ 6000/ 10,000 per km.

50 times cheaper to connect photonically• 35000 towns connected by broad band OF system• 98% of 650,000 villages telephoned

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Telecom Connectivity (1)

• Technology and Competition brought down costs by over 80% and prices nearly by 90%

• Rural demand for telephones exceeding urban demand • First phones people have are mobiles • Wireless deployed for last kilometer connectivity• Cable TV allowed for broad band

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Telecom Connectivity (2)

• Spend on phone is less than 8% of per capita income (compared to 250% in 1951, and equal in 1994 ) it has to come down to less than 5% to be on par with developed countries

• 90% of telephones are mobiles • 90% of mobiles are pre-paid – control over spend• Hardly any growth in fixed phones; • Growth in mobile phones – 15 mln/month• WiFi and WiMax being deployed

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PCI

AX TSP

Time

(a) Affordability

A PCI/ Tele-Service Price- PCI: Per Capita Income- TSP: Telephone Service Price- A: Affordability

Bring down price to increase affordability

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Applications of IT e-governance e-commerce e-banking e-mail e-libraries e-tendering e-registrations e-land records e-learning e-public opinion polls e-balloting e-examinations e-rail reservations e-ticketing

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Applications of IT e-seva

e-Bill payments e-money transfers e-share trading e-causelists in Courts e-whistle blowing e-town-halls e-advocacy Video conferencing Govt at peoples doorsteps e-transparency Central Vigilance Commissioner

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ICTs have Accomplished (1)

• Death of distance [Earth is Flat by Thomas Friedman]

• Postalisation of tariffs• Democratisation of knowledge [www &

Internet]• Prospect of Participatory [and not

representative] democracy (as in Athens in ancient times)

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ICTs have Accomplished (2)

• Empowerment of even the small man to influence govt. [Chief Minister face to face with people]

• Getting govt to account – Transparency [govt at the door step of people]

• Masses, rural folks, artisans, women drawn into economic activity – DWACRA – global markets for folk works.

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Exploitation of ICTs

Survival/Thriving of the fitted Education/skills Digital divide Inequality if all are not enabled to use ICTs If driving is not learnt what is the use of the car Removal complexity from interfaces devices Compute education for all – class VI onwards “Reskilling” the elders like adult education

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Internet

Network of networks of information, globally interconnected.

Accessible not only from PCs, laptops, palm-helds, cell phones, wirelessly ( riding on roads, sailing on seas, flying across space)

3.5bln. or 50% of the world’s population has access to Internet

67% of world population has cell phones; many can access Internet

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ICTs for Farmers (1) Coromandel Fertilisers – “Outreach”

• Regd. Sugarcane farmers• Centered around Sugarcane Command Area in

Nellikuppam Cuddalore Dist.• Information from Franchised kiosks (Parry’s Corners)• India Agriline Farmer’s Forum• Comprehensive Farming Services• Covers paddy also since 2002• Nagarjuna Fertilisers• EID Parry & Coromandel Fertilisers

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ICTs for Farmers & Fishermen (2)

• Nellikuppam / Pondicherry -

EID Parry / Coromandel Fertilizers; and Nagarjuna Fertilizers, Services to Agriculturists

• Kerala Fishermen’s use of cell phones

• GPS & Remote Sensing guides Fishermen where to fish & unload the catch

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ICTs for Farmers (3) ITC’s e-Chaupals

• Procurement of soya-beans directly from the farmer • 6,500 chaupals in 8 States, serving 40,000 villages in MP,

Maharashtra, Rajasthan, Andhra Pradesh, Haryana, Karnataka, Uttar Pradesh & Utteranchal & under extension to 11 more States

• 1000 chaupals connected by V-Sats; rest wireline • ITC invested Rs.460 mil ( US $ 12 ml.) • The chaupal is operated by a trusted, selected farmer

instructed, in operation of the PC with a modem, V-Sat with a solar panel and a battery backup

• Growth & procurement of soybeans, coffee, wheat, rice, pulses, shirmp

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ICTs for Farmers ITC’s e-Chaupals

• For ITC 2% saving; the Sanchalak gets 0.5% of sales

• All information in the local language in the company’s website in Bangalore ITC Infotech

• In AP of the 175 chaupals 100 relate to tobacco and 75 to acqua ( shrimp) concern

• Now collaborating with govts to deliver other services [eg.e-sevas in AP; micro credit, insurance, health & education]

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ICTs for Rural Populace

• Education: Computer skill integral to literacy/ education for all (AP, KN,TN…)

• Extend Internet to all villages. Upgrade public telephones into Internet Kiosks

• Educated & trained attendant

• Deliver G2C; B2C services

• Andhra Pradesh project: 5000 villagesTHC_CTMS

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ICTs for Women

• DWCRA groups in Andhra Pradesh

• About 350,000 cell phones for the groups

• Product advertisement & market creation Websites (Toys, knit wear, lace curtains, ornaments, painting…)

• Tele-education.

• E-cash tranfersTHC_CTMS

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Internet & E-Seva into Villages (AP)

• Upgrade STD/ISD VPTs into Public Internet Kiosks Rs. 50,000/- per kiosk ($120)

• Rural Service Delivery Points

• e-sevas available in almost all towns available

• Land Records, Property taxes; B & D certificates

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Work taken to Villages: GramIT

• While US, EU, Oceania outsource to Hyderabad, Hyderabad out-sources to villages.

• Satyam Computers & Byraju Foundation• 200 Resident village graduates ( BA, B.Com,

B.Sc) trained in Ameringlish; imparted computer & Internet skills

• Satyam (Hyderabad HQ) outsourced its own internal work (pay-roll, accounting; travel; training; MIS

• Satisfied,work from abroad moved to villages

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Work taken to Villages: GramIT (2)

• Broad-band telecom (optical fiber) 512 kbps extended from point of presence (POP) to work-site by PMP wireless

• Called Gram ITs, these offer transaction processing services (accounting, bulk mlng; records digitisation, reminder and follow-up and travel support).

• A whole Gram IT can be dedicated to a customer (like twinning of cities across continents; city com@Gram.IT twinning)

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Work taken to Villages: GramIT (3)

• Gram IT-team contributed part of profits for village development scheme designed by them – Independent and local initiative

• Rural Pressure group to demand and get quality infrastructure and services such as roads, retailing, education, health

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Social Impact of Gram IT

• Reverse migration ( 5% within 6 months)

• Educated house-wives (lost resource) join work force (no travel)-20% now

• Un-married girls: better spouses

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E M R I (1)(In the State of Andhra Pradesh )

• 502 ambulances stationed in 50 towns, in all the State’s Districts

• 80 mln people access EMRI through 108

• 100,000 emergencies attended & 20,000 lives saved in launch five years ago

• 95% of calls answered within 2 rings

• 16 mnts to reach a victim

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E M R I (2)

• A Satyam computer funded Byraju Foundation launched, operated & maintained emergency health/medical service

• Depends upon wireless, computers & networks

• Agreements with hundreds of private & government hospitals

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E M R I (3)

• Police & Doctors at the Central office in Hyderabad

• Accident & Disease mapping

• Govt “owns” & other govts want

• Example of corporate service to citizens with government co-operation

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Forging the Missing Link

The attended public telephone (PT)

- Illiteracy no bar, because of educated attendant; self-employed, living by

commission

- 1.2 mil PTs in India (40% in villages; 60% in towns

- 30% of telephone revenues from PTs!

- Tele-density 75% in India 30% in Rural areas

- Yet No disability for any

- Broadband $ 4.0bln (Rs. 200 bln) nation optical fiber project to link

350,000 Panchayats

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Universal Access Fund (UAF) & Provision (1)

• 5% of sales of all Telcos• UAF Administrator• Bids for provision

– Award Criterion - Lowest Annuity Payment

• Village PTs & Public Internet Kiosks • Radio Base stations (RBSs) to cover rural areas

funded by USF & allowed to be shared• Rural mobile phone coverage subsidised from

USF

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Universal Access Fund (UAF) & Provision (2)

• Telephone/Internet in schools, Public Libraries,

Primary Health Centers

• IP/VOIP Telephony, Tele-medicine

• Private Philanthropy Foundations eg. Byrraju

Foundation, Hewlett Packard – Wipro, Intel

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ICTs Everywhere & for every Purpose (1)

• Harvesters equipped to measure grain• Fertiliser application & sprayer (insecticide)

regulated• Water distribution & irrigation regulated (Israel)• Milk procurement, sugarcane delivered,

credit/payments computerised & networked• Counselling for admission & interviews for

appointments and job search from Internet kiosks

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ICTs Everywhere & for every Purpose (2)

• In the words of the Bhagavad Gita (Song Celestial)

Sarvatah pani-padam tat Sarvato'ksi-siro-mukham Sarvatah shrutimal loke Sarvam avrtya tishthati (B.G. 13.13). [IT has its hands and feet everywhere, IT has its

eyes and face everywhere, IT enhances/illumines everywhere, IT sits pervading everything

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DHANYWAD:

THANK YOU

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