The debate on whether IT can do anything for poverty is posed against the backdrop of the burgeoning numbers of telecenters in the rural Indian context today...
Tuesday, April 29, 2003
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Information technology advocates who see a strong case for its use in
bridging the digital divide hold that poverty and lack of access to information
are linked. Better information and communications technologies (ICTs) are
perceived as harbingers of opportunity, especially for the excluded, to deal
with deprivation and remoteness.
There’s some scepticism about the sense of hope that fuels social
experiments in IT. And this debate on whether IT can do anything for poverty is
specifically posed against the backdrop of the burgeoning numbers of telecenters
in the rural Indian context today. Also called ‘Information Kiosks’ or ‘Village
Knowledge Centers’, telecenters represent the most significant aspect of the
ICT for development world. Significant because, they bring into scenarios
characterised by huge development challenges, new-age paraphernalia that promise
to do much more than merely transform the landscape. The telecenter is seen as
having the potential for public access facilities in low-income and rural areas
to provide a broad range of low-cost communication and information services,
ranging from phone calls and email to multimedia, distance learning and
e-commerce.
The tele-center ‘revolution’ beginning the late 1990s, was a step to
taking IT to underserved populations—a shift from the urbane nature of India’s
IT forays. It has ushered in the concept of a community computer, providing a
space for those who cannot afford their own PC, phone line or Internet
connection and has coincided with the greater affordability of technology
itself.
Multiple players in the country, seeking to bridge the digital chasm between
the urban ‘haves’ and the rural ‘have nots’, have set up tele-centers. A
preliminary collation indicates efforts by the government under the e-governance
rubric to reach village communities (like GyanDoot in Dhar, Madhya Pradesh; Lok
Mitra in Hamirpur, Himachal Pradesh; e-srinkhala in Kerala; Mahiti Shakti in
Panchmahals, Gujarat). NGO efforts include the Village Knowledge Centers of the
MS Swaminathan Research Foundation, Pondicherry; kiosks in Madurai, Tamil Nadu
run by Development of Humane Action Network Foundation, and more recently, RASI
Maiyams run by the Foundation of Occupational Development, in Tamil Nadu along
with the district collectorate of Kanchipuram. Private sector initiatives to
address the information needs of rural India that have received prominent
coverage by the media include Drishtee, TARAhaat, N-Logue and Baatchit. The
private sector has also partnered with the government in some cases like the
Mahila Spurthi initiative, where CoOptions and the district collectorate of West
Godavari district Andhra Pradesh have come together to set up kiosks.
Targeting
the Remote, the Rural and the Disadvantaged
Project
Location
Initiator/s
Initiator/s Type
Email/URL
Baatchit
of Community Learning and Information Centres (CLIC)
Tikawali village, Haryana
Media Lab Asia (MLA) and Jiva
MLA—Research
Institution of Govt of India and Jiva—NGO
For corporates, kiosks that answer specific needs of rural agricultural
communities seem to make perfect business sense. The EID Parry enterprise is
aimed at enhancing e-commerce in the agricultural sector. Internet kiosks called
‘Parry’s Corners’ have been designed to cater to the agricultural,
educational and commercial needs of the rural communities of Nellikuppam, Tamil
Nadu, using connectivity provided by n-Logue. In order to make navigation
easier, the website has been equipped with rollover audio features and
Tamil-language text.
e-Choupal, ITC’s International Business Division offers farmers of North
India information, products and services to enhance farm productivity, improve
farm-gate price realisation and cut transaction costs. Farmers can access latest
local and global information on weather, scientific farming practices as well as
market prices at the village itself through this web portal - all in Hindi.
Choupal also facilitates supply of high quality farm inputs as well as purchase
of commodities at their doorstep. Given the literacy and infrastructure
constraints at village level, this model is designed to provide physical service
support through a Choupal Sanchalak—himself a lead farmer—who acts as the
interface between computer terminal and the farmers.
The network and connectivity model adopted by Telecenters differ. The
Drishtee kiosk has a user-friendly, stand-alone application. The database, mail
and other messages queued at the kiosk get uploaded and updated to the district
server whenever the kiosk connects. The district server acts as the local
content provider, providing data like the Mandi price, etc and acts as a
sub-administrator, processing the requests of the local kiosks, facilitating
communication, monitoring kiosks and administering the district database. The
web server acts as the main administrator of the complete system. It coordinates
communication between districts, administers the performance of districts and
kiosks and acts as national level content provider. The Drishtee kiosk connects
to the web server through an ISP or connects directly to the district server as
the latter acts as a Remote Access Server. In Rajasthan, Drishtee has partnered
with Aksh Optifibres to provide Optic Fibre Connectivity to the kiosks. Drishtee
is also exploring the ‘hunting line’ facility, which will enable an auto
transfer to the next line when the original line is inaccessible.
The n-Logue model uses the corDECT Wireless in Local Loop developed by TeNet
group to provide access and connectivity. The kiosk is connected to a Local
Service Provider where a Data Interface Unit switch is located. The LSP in turn
is connected to the basic service operator, be it BSNL or private operators like
Tatas or Reliance using copper or fibre optics. The copper carries the voice
while a leased line from a LSP to a nearest Internet gateway carries data. A LSP
can serve kiosks within a radius of 25 km and cater to needs of nearly 300
villages. The LSP and ‘Chiraag’ kiosks—the n-Logue brand of kiosks—work
in a typical hub and spoke type pattern with the LSP forming the hub and the
kiosk operators forming the spoke. This arrangement provides dedicated bandwidth
for all hub and spoke connections. Many tele-centre projects across India use
the corDECT technology to provide connectivity, prominent among which are
Sustainable Access in Rural India in South India, DHAN in Tamil Nadu, GyanDoot
in Dhar Madhya Pradesh, EID Parry in Nellikuppam, Tamil Nadu.
The franchise business model is popular with private sector operators in the
tele-centre arena. The Drishtee business model gets revenues from the license
fee and deposit fee collected from kiosk owners. An initial deposit of Rs 70,000
is collected from kiosk owners and is inclusive of the costs of providing
connectivity with the server at the district level, equipment fees - computer,
telephone, and scanner from the kiosk owners. The kiosk owner pays Drishtee Rs
10, 000 as a license fee and an additional Rs 10, 000 is charged as a refundable
security deposit. Drishtee has a 20% stake and the kiosk owner has an 80% stake
in the revenue earned from the kiosk.
TARAhaat also has adopted the franchise-based business model in which the
franchisee or the owner has to pay for the initial capital investment and
operating expenses every month. Besides this, they have also to pay TARAhaat an
annual franchisee fee for the year round support provided by the latter. The
franchisee or the TARAkendra owner in turn earns his revenue by charging the
customers a fee against the products/services rendered. TARAhaat decides the
pricing of the products and services.
At the upper end, rural Telecenters set up as businesses are usually equipped
with a PC, CD ROM with multi media, modem, web camera, scanner printer, UPS with
battery back up for around four hours, and typically offer a range of services
from provision of government certificates and records; general information such
as employment news; innovations like matrimonial services; e-education; market
prices and auctions; and printing, photography, DTP etc. Services are usually
provided for a price varying from Rs.5 to Rs.30. Most players recognise that the
possibilities for using technology to meet local needs are immense provided
community priorities are translated into specific services. In addition to
government records, some tele-centre models facilitate online payments, like for
transport reservations. In Punjab, on-line bookings for a bus service from
Ludhiana to the International Airport in New Delhi is done at Drishtee’s
kiosks. One centre run by the M S Swaminathan Research Foundation provides
weather forecasts picked up from a decommissioned US Navy Satellite via the
Internet and transmits the same over loud speakers to the coastal village. In
the DHAN Foundation operated kiosks in Madurai, the web camera is used
extensively. DHAN has partnered with the local Aravind Eye Hospital for remote
diagnosis of eye ailments. Feedback on crop ailments is also obtained from the
local Agricultural University, through web camera based transfer of images.
Focus on the youth, as also on the aura surrounding IT literacy, is a
profitable niche for most tele-centre operators. The TARAkendras of TARAhaat
besides educating people about the Internet and e-mail, has developed
educational courses, both IT and and non-IT, to impart skill-based job-oriented
education to the students. Courses being offered are in Information Technology
basics, practical English, and Personality Development. Courses in the pipeline
include courses on Sales Management, Office Administration and Career
Counselling. TARAhaat feels that these courses have found widespread favour with
the students and the unemployed youth as they feel it has increased their
chances of employability. The local schools and industry have absorbed some of
the brighter students as computer instructors and data entry operators. TARAhaat
has also entered into a tie-up with industry for finding job-placements for its
students as well as for short-term on-the-job training.
While telecenters seem to have provided shared access to communications
infrastructure and generated some employment in rural contexts, there are still
many critical challenges to the fundamental hope vested in their potential to
really bring transformation.
Sustainability Most tele-centres are started as ‘pilot projects’ with donor funding. In
the beginning, a few demonstration centres or showcases are drawn up and after
the proof-of-concept is established, then scaling is thought of. This approach
is one that sets itself up only for a short-term success with no guarantee
whatsoever of success in the long-term. The approach is not geared to creating
solutions in the first place, that can be scaled up rapidly. Experts studying
sustainability issues surrounding tele-centres feel that after the so-called ‘pilot
phase’ when donor funding stops, in most cases, the tele-centres turn into ‘white
elephants’, and that a business model conceptualised at the start is
imperative. A case in point is the Madhya Pradesh Government’s much-publicised
Gyandoot e-governance initiative. Thirty-nine information centres were set up to
make people in 500 villages computer literate and serve as one-stop shops for
information. Of these, seven centres have an average of 35 visitors a day and
six centres are non-existent, as the phones do not work. The rest have very few
visitors. Poor implementation and infrastructure has meant that it has made
little difference to the lives of the villagers. In a recent interview to NDTV,
a villager in Dhar district remarked, "Nobody has told us in the village
that such a service is available." The report also highlighted how the
operator at the information centre in Nalcha Block in Dhar has no clients. He
has no electricity for hours and his information kiosk is deserted. Providing a
basket of 44 services as was envisaged at the start seems a tall order, given
the constraints.
Joseph Thomas, of SARI talks about how external factors like poor rainfall in
the region also affect the cash flow within the village and hence internet
usage. High cash flow in villages is seasonal being tied closely to rain and
good harvest. "Due to the seasonal nature of cash flow, revenue in the
kiosks gets affected. Increase in the number of revenue generating services
alone may not be enough for the kiosk to survive. Cash flow within the kiosk
needs to be increased by applications that allow kiosks to make payments on
behalf of villagers through the Internet."
The tele-centre business community as also many academics tracking
initiatives seem to be in complete consensus about the central role that a
market-savvy entrepreneur can play for making rural connectivity a financially
viable proposition. The entrepreneurial abilities and ingenuity of the kiosk
operator in providing locale specific services to the community is key. Joseph
Thomas, Programme Manager of the TeNet-backed SARI project, says, "Kiosk
operators have to have many different skills and ways and means to develop these
skills will become the focus of attention now. Over the past one year, the
project has observed the emergence of several skilled operators who through
their individual effort have shown the kiosk can become financially viable. In
order for the remaining operators to be equally successful it is imperative that
a programme be designed to help those operators gain the same skills possessed
by the successful kiosk operators".
Ashok Jhunjhunwala, professor of the Electrical Engineering Department, IIT
Madras, who has incubated some of the very successful startups in telecom and
networking, also affirms the overall enterprise approach of n-Logue. "Using
entrepreneurship as the key as was done for the STD-PCO, putting a training and
service infrastructure which could support such kiosks (again as business) and
driving the kiosk operator to earn a minimum of Rs. 3000 per month", Prof.
Jhunjhunwala feels, are the basics that have gone to make the n-Logue venture
successful.
But to many non-profit players operating tele-centres, sustainability means
much more than financial sustainability. Where the tele-centre is seen as more
than a shop providing information and communications services, the goals of
community development and the task of integrating social sustainability as a
vital element into the planning and operation of the tele-centre become
important. The M S Swaminathan experience focuses on the community’s ownership
of the tele-centre emphasising how processual inputs that gradually enable
ownership of the tele-centre by the community as an asset are central. A lot of
significance is therefore attached to training poorer women, who then go on to
becoming managers of the centre.
Financial sustainability: Case of the SARI project The SARI project has focused on ways and means to increase revenues from the
Internet based services. Many of the standard applications have been developed
independent of the project by the different partners.
Also, each kiosk has revenues from three different sources
n Computer training and education
n Off line services, job typing,
Desk Top Publishing, Audio-Video CD’s, games etc.
n Internet based services
The project has been able to identify that in an overall sense, it is
students (ages 8 to 18) who will form the bulk of users at the village Internet
kiosk. Encouraging this category of users therefore is seen as a priority. SARI
plans to develop interactive educational content, hold internet based
competitions and evolve special pricing schemes for this group of customers.
The project has also identified the need to increase financial transactions
within the village Internet kiosk as the obvious way to increase cash flow. To
this end, together with ICICI, the following products are being developed and
tested.
n Internet based credit card
n Low-cost ATM
n Line of credit for Loans.
n Micro-finance interactions and
transactions
n Money transfer
Hardware & connectivity Hardware and connectivity related problems are a major challenge that rural
telecenters face.
Current hardware menus still require heavy investment, although costs have
been going down. For a vast majority in the rural Indian context, the prices of
hardware make access to IT unattainable. Rajesh Jain, MD of Netcore, is among
the young visionaries in the IT arena who strongly feels that the technology
menu for rural contexts needs to be tailored differently from mainstream urban
solutions. He further opines that the need of the hour is for a completely fresh
and bottom-up analysis of the rural markets, keeping in mind the emergence of
"cold technologies"—technologies, which have neutral revenue or even
anti-revenue attributes.
Power shortage in rural areas has proved to be a spoke-in-the-wheel for
almost all rural tele-centres. With power supply lasting up to not more than 3
hours or less on an everyday basis, and tele-centres having to depend on battery
backup, questions about viability come to the fore.
In terms of technology, therefore, workable alternatives for rural India
become a priority. Prof Ashok Jhunjhunwala, is the brain behind the indigenously
developed (wireless) corDECT technology, which provides simultaneous telephone
and Internet access. CorDECT is a giant step in the direction of fulfilling the
dream to eventually networking 6.4 million villages across India. CorDECT is a
Digital Enhanced Cordless Telecommunication (DECT) based Wireless Local Loop (WLL)
system that offers a very low per line cost, toll quality voice and data service
up to 70 kbps. It is suited for both dense, urban and sparse, rural deployment
scenarios. CorDECT has the capability to sustain two parallel connections of the
telephone and the Internet simultaneously. The corDECT system has been designed
such that it can be easily integrated with the existing network. CorDECT has
been designed to be a modular system. While the basic unit provides service to
up to 1000 subscribers, within a radius of 25 kilometres, multiple corDECT
systems can be connected together using a transit switch. The system has been
designed in such a way that the initial investment for the fixed part is low.
Further, since this scheme does not require frequency planning, the
installations need not be coordinated. Coupled with the low cost, corDECT is one
of the most versatile and viable Wireless in Local Loop systems available today.
The Foundation of Occupational Development is looking at the alternative of
providing Internet connectivity at the Rasi Maiyams—FOOD’s kiosks in
Kanchipuram—with the aid of mobile phones.
Reaching the last mile Expressing scepticism about the telecenter model, Fredrick Noronha, a
freelance journalist and IT for Development activist from Goa remarks,
"What exactly could tele-centres get used for in the Indian context, is a
question that needs to be asked. I think they’re vastly under-tapped because
most people don’t have the ideas of what these could be effectively used for.
I am not too fascinated with the tele-centre model…it is known to have reached
nowhere in places like Africa, after tonnes of money was poured in."
The concern about relevance implicitly translates into relevance for the
majority. A big challenge therefore, in reaching connectivity and networking
solutions to people in India, pertains to access by the poorest. For
tele-centres to have an impact on the more disadvantaged in any rural context,
the social barriers that inhibit access of the poor and powerless have to be
grappled with. A large majority in rural areas suffer from the simultaneous
stranglehold of weak public infrastructure and low levels of individual economic
strength and educational capability. Not many initiatives seem to reach the last
mile although the tele-centre initiatives of MSSRF, and NGOs like DHAN, are more
consciously directed at access for the poorest.
Talking about the MSSRF tele-centres, Professor Ashwani Saith, an economist
from Institute of Social Studies The Hague, argues that the poor still remain
underrepresented in accessing the knowledge centres. Prof Saith’s research
underscores the imperative for moving beyond generic references to the village
community. His concern is basically with the benefits of IT for the poorest. He
argues that a range of questions need to be asked in the context of village
tele-centres: What is the frequency of use by the poor vis-à-vis the non-poor?
Who are the individuals from the poor families that use the facility: the school
going, young, adult male? What are the patterns of use in terms of content,
i.e., expressed need, for the poor and non-poor? What is the rate of
participation of the Dalits?
Prof. Saith also observes that in the MSSRF experiment, the content and
information that has been generated with respect to advice on ecological ways of
growing local crops and protecting them from diseases, daily market prices for
those crops in different markets in the project area, directory of insurance
plans for both crops and families etc, are items of information that are of
interest and relevance mainly to landowners, not to the rural poor who are
mostly landless, whether as agricultural labourers or impoverished service and
artisanal groups.
Apart from government records and certificates, the need for which even the
poor have, tele-centres seldom deliver content or services relevant to the poor.
Models that look at health education, literacy, skill building, linkages with
industry and outside markets need to be designed and implemented. These models
will demand investment towards research, production, and dissemination of
appropriate content. CDs hold the potential for taking development knowledge to
people and production of low-cost CDs is an urgent need.
The telecenter can also serve as a physical space that allows people to come
together for planning development strategies to improve their lives, a model
that Unesco calls multi-purpose community telecenterjs. Financial investment
from donor agencies and corporates as well as the involvement of local NGOs can
play a role in harnessing the potential of tele-centres to help the poor.
Directions forward The scene of community informatics and tele-centres is itself rapidly
changing, while ICTs also are in constant transformation. Varied experiences
exist in many other developing countries and the social potential of
tele-centres has been exploited in many ways. The tele-centre community needs to
build up and create links and partnerships between the social, private and
governmental sectors. All these sectors have a strong interest and involvement
in overcoming the digital divide, be it for political, economical or social
reasons, but in order to be effective, none of the sectors can operate on its
own.
There is already a great deal of research into tele-centres and tele-centre
management, but too often it is cut off from actual practitioners, their
experiences and their needs. This gap needs to be addressed.
Huge possibilities for cross-sharing of innovations in community
transformation processes aided by tele-centres exist if tele-centres can be
networked. This networking need not be restricted to regions within a country
alone but also regions across the developing world. In October 2002, 25 people
from 11 different countries participated in the first South-South travelling
workshop on ICT-enabled development organised by the MSSRF.
Telecenters can catalyse a revolution only if there is a consensus of
perspective and a commitment in action to move beyond business models: "Telecenters
are much more than mere access points to the new technologies. They are places
of encounter, dialogue, learning and exchange that lead to personal and social
change," opines Klaus Stoll, advisor, ICT for Development, Development
Gateway. It is the scope for change in this direction that all stake-holders
need to nurture.
Reshmi Sarkar
The author contributed this piece to Dataquest and is the programme coordinator
of IT for Change, a non-profit organization located in Bangalore. ITfC supports
the info-communication needs of other NGOs and undertakes research on the social
dimensions of ICTs.