Wireless Communications and Development: Rural India Focus

In October 2005, the Annenberg Research Network on International Communication (ARNIC) at the University of Southern California (USA) held a workshop - "Wireless Communication and Development: A Global Perspective" - as part of a multi-disciplinary effort to study the emergence of new communication infrastructures, examine the transformation of government policies and communication patterns, and analyse the social and economic consequences.

This 52-slide PowerPoint presentation emerged from that October 2005 event. Organised into several sections, the document explores several trends in access to and use of wireless technology, with a focus on rural India. It also highlights promising initiatives that are using new information and communication technologies (ICTs) to foster education, telemedicine, e-governance, micro-enterprise, agriculture, and basic communication in rural areas in India, which is home to 700 million people in 600,000+ villages (about 1000 people per village, with per capita income of US$0.50 per day).

I. Introduction: Telecom Boom in India

Jhunjhunwala reports that wireless technology has enabled India to reach its 1994 dream of crossing 100 million telephone lines in a decade; as opposed to less than 10 million lines in 1994, India crossed 100 million lines in April 2005. The question is, "Can the same be accomplished in rural India?" The author notes that the mobile market in India has "boomed": the jump from 5 million in 2003 to an expected near 500 million in 2010 is dramatic. With a handset price of US$40 or more, infrastructure costs have been reduced to enable service at 1.5 cents per minute and Average Revenue Per Unit (ARPU) of $7 per month, which has contributed to the growth. However, to pull in an additional 300 million rural subscribers, Jhunjhunwala suggests that the price be lowered to 0.5 cents per minute (service) and US$ 2 per month (ARPU).

In addition to telephony, Jhunjhunwala notes that the internet has a significant role to play in bringing education, health, and micro enterprises to rural India. A sustainable business model, and an organisation "which thinks and acts rural", will support this growth.

II. Connecting Rural India: Technologies - Today and Tomorrow

Jhunjhunwala explains that India has fibre which reaches most towns, and most villages (85%) are located within 15 to 20 Kms of such "taluka" towns. A wireless hub at the town with a wireless range of 20 Kms can provide connectivity to most of these villages. Wireless technologies today are inexpensive; new developments are enabling higher and higher bit-rate connectivity for each village. Furthermore, wireless technologies are continuously evolving, costs decrease, and bit rates increase, year after year; Jhunjhunwala cites several specific examples/figures of these trends. He also examines several new wireless internet access technologies for villages, such as HDR/HSDPA (promising 100 plus kbps to each village - available now) and WiMax (which may give 500 kbps to each village - mid-2007).

III. Communications and Development: Leapfrogging using Connectivity

Jhunjhunwala discusses possibilities for further growth within the wireless sector in rural India, based on past accomplishments and future promise. For instance, entrepreneur-driven, operator-assisted telephone booths were introduced in 1987; today, 950,000 such public call officers (PCOs) cover every street to generate 25% of total telecom income, serving 300 million people. The author stresses that, to serve rural people with incomes of less than US$1/day, demand should be aggregated at every village and entrepreneurs should drive the process. In short, no one should have to walk more than 500 m to access services, and as many services as possible should be provided.

As one example of such an approach, Jhunjhunwala points to "n-Logue", which costs US$1200 per kiosk, and provides telephone, internet, a multimedia personal computer (PC) with web-camera, printer and power back-up for PC (plus Indian language software, video conferencing software, training and maintenance). The system is set up by a village entrepreneur on the lines of urban PCOs...

IV. Building Services for Rural India

In the second half of the presentation, Jhunjhunwala seeks to assess where India "is" with regard to infrastructure, capacity building, and end-to-end services using ICT. Using a 5-point scale, he rates and comments on various components of wireless access and use in rural India. To cite one example of the communication services he evaluates here, n-Logue's various educational offerings (such as basic computer courses and web-based 9th and 10th Std online tests and tutorials) can earn kiosk operators in a village of 1500 $90 per month or more. As Jhunjhunwala explains, n-Logue has developed remote teaching to tutor children in different subjects, such as social studies and geography. Designed to help students pass their school examinations, the online, multi-media courses have "significantly improved pass-percentage of students in a few villages". The most popular tutorial is the "Spoken English" course. By undertaking this initiative, as well as others detailed here, n-Logue sustains 2500 kiosks, primarily in 3 states of India. A sample survey of 150 kiosks over the last year found that 62 out of 150 kiosks have added a second PC, and many more have added CD-writers, scanners, and/or an additional printer.

Jhunjhunwala hopes that, in the future, the kiosk will be a key part of the goal of doubling India's per capita rural gross domestic product (GDP) - through finance, commerce, training, and information, and by driving education, health and entrepreneurship.