1. Telecoms & IT For Rural Development By DR T.H. CHOWDARY Director: Center for Telecom Management and Studies Fellow: Tata Consultancy Services Chairman: Pragna Bharati (intellect India ) Former: Chairman & Managing Director Videsh Sanchar Nigam Limited & Information Technology Advisor, Government of Andhra Pradesh T: +91(40) 6667-1191(O) 2784-6137& 2784-3121® F: +91 (40) 6667-1111 hanuman.chowdary@tcs.com Talk @ NIRD, HYD: 15 Dec 2012 THC_CTMS1S682_Dec2012

2. 2 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 village We will make telephoning cheaper than a post card) - Dr T.H.CHOWDARY - 1994 Haath Haath mein telephone Gaon 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. THC_CTMS

3. 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 transport  Steam engine on rails - A new transportation system  The printing Press in the year 1439 by Gutenberg  Dissemination of knowledge  Libraries to bridge the knowledge divide THC_CTMS3S682_Dec2012

4. 4 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 THC_CTMS

5. 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 THC_CTMS5S682_Dec2012

6. THC_CTMSS682_Dec20126 4500 4000 3500 3000 2500 2000 1500 1000 500 0 1000 1200 1400 1600 1800 2000 Source: Angus Maddison; J.P.Morgan World GDP per Person, 1000=100 S & T for Wealth Creation

7. THC_CTMSS682_Dec20127 World Population and the Poor YearPopulation% of the Poor 1820 1.1 billion85% 1980 5 billion30% 2000 6 billion20% 20076.5 bln18% 2012 70 bln15%

8. THC_CTMSS682_Dec20128 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

9. S682_Dec20129 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 THC_CTMS

10. Affordability of Electronic Devices: Ratio of Price of Device to Per Capita Income in India 19511974199420072010 Radio20.50.020.005 TV SetNA1.91.20.370.25 Year's Telephone Service 2.5110.120.08 PC60.750.4 THC_CTMS10S682_Dec2012

11. 11 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 THC_CTMS

12. S682_Dec201212 Urban/Rural Incomes in India 70% of population is Rural; 65% of workforce in Agriculture Contribution of Ag to GDP-(28% in 9 th 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 THC_CTMS

13. S682_Dec201213 The Various Divides Urban-Rural The Rich-Poor Educated-Illiterate Landed-Landless Protected Water; Houses; Electricity Telephone - (the Missing Link) The Digital Divide THC_CTMS

14. S682_Dec201214 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 THC_CTMS

15. S682_Dec201215 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 THC_CTMS

16. S682_Dec201216 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 THC_CTMS

17. S682_Dec201217 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 THC_CTMS

18. S682_Dec201218 PCI A X 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

19. S682_Dec201219 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 THC_CTMS

20. S682_Dec201220 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 THC_CTMS

21. S682_Dec201221 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) THC_CTMS

22. S682_Dec201222 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. THC_CTMS

23. S682_Dec201223 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

24. THC_CTMSS682_Dec201224 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

25. S682_Dec201225 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 THC_CTMS

26. S682_Dec201226 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 THC_CTMS

27. S682_Dec201227 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 THC_CTMS

28. S682_Dec201228 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] THC_CTMS

29. S682_Dec201229 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 villages THC_CTMS

30. S682_Dec201230 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 tranfers THC_CTMS

31. S682_Dec201231 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 THC_CTMS

32. S682_Dec201232 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 THC_CTMS

33. S682_Dec201233 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) THC_CTMS

34. S682_Dec201234 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 THC_CTMS

35. S682_Dec201235 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 THC_CTMS

36. S682_Dec201236 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 THC_CTMS

37. S682_Dec201237 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 THC_CTMS

38. S682_Dec201238 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 THC_CTMS

39. S682_Dec201239 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 THC_CTMS

40. S682_Dec201240 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 THC_CTMS

41. S682_Dec201241 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 THC_CTMS

42. S682_Dec201242 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 THC_CTMS

43. S682_Dec201243 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 THC_CTMS

44. S682_Dec201244 DHANYWAD: THANK YOU THC_CTMS