Bottom Of The Pyramid Ver 1.3 22 May 2011 Final


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Telecom has already brought the benefits to masses but convergence of TIME (Telecom, Internet, Media and Edutainment) will empower masses and reduce digital and social divide. Broadband economy will eradicate the birth penalty for a child born in developing country or rural area due to poor access to quality education, information, healthcare services and earning potential.

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Bottom Of The Pyramid Ver 1.3 22 May 2011 Final

  1. 1. Compiled by Ae g is Leadcap Consultin g and Res e arch Telecom Innovation Series, as a prelude to Aegis Graham Bell Awards 2011
  2. 2. SIZE OF RURAL INDIA 70% OF INDIA URBAN Much has been said of the benefits of telecommunication especially at the ‘Bottom of the Pyramid’. The economic as well as social benefits from telecom, in theory as well as in practice enable people to graduate from poverty and also contribute more widely to development. Telecom services helps masses to increase indirect income generation capacity and save on expenditure or transactions costs. Telecom has already brought the benefits to masses but convergence of TIME (Telecom, Internet, Media and Edutainment) will empower masses and reduce digital and social divide. Broadband economy will eradicate the birth penalty for a child born in developing country or rural area due to poor access to quality education, information, healthcare services and earning potential. This report studies the impact of telecom services at the ‘Bottom of the Pyramid’ in India particularly and world in general and provided references of various cases. Introduction
  3. 3. Scope of Report <ul><li>Bottom of the Pyramid Needs and Challenges </li></ul><ul><li>Impact of Telecom on Bottom of Pyramid </li></ul><ul><li>Role of Telecom in Education, Healthcare and Income & Employment </li></ul><ul><li>Impact on Indian farmers </li></ul><ul><li>Success Cases </li></ul><ul><li>Next 500 million subscribers </li></ul><ul><li>Take away </li></ul>
  4. 4. SIZE OF RURAL INDIA 70% OF INDIA URBAN Why Bottom of the pyramid
  5. 5. <ul><li>India: emerging as an ICT Society </li></ul><ul><li>Mobile: 800 million [Individual Connections But unique User </li></ul><ul><li>Base is ~ 430 m] </li></ul><ul><li>TV: 200 million [Households] </li></ul><ul><li>Radio: 120 million [Sets] </li></ul><ul><li>Internet: 80 million [connections] 40% Mobile Internet Users. </li></ul><ul><li>Info Kiosks: 75,000 [250,000 by 2012] </li></ul>
  6. 6. Needs of the Bottom of the Pyramid Bridging “The Great Indian Digital Divide!” - Access to Information, bottom up information dissemination Health facilities and clean sanitation Agricultural Technologies Education Electricity Information
  7. 7. <ul><li>Unemployment and under employment </li></ul><ul><li>Low income </li></ul><ul><li>Lack of healthcare services </li></ul><ul><li>Lacking effective education </li></ul><ul><li>Lack of transportation </li></ul><ul><li>Lack of information on governance policies </li></ul><ul><li>Real Time Information of market price, weather etc </li></ul><ul><li>Middlemen </li></ul><ul><li>Difficulties in commercial transactions and higher transactions cost </li></ul><ul><li>Shortage of opportunities in infotainment </li></ul>Key challenges at Bottom of the Pyramid
  8. 8. Impact of Mobile Phone on Income and Employment Challenges Solutions by telecom Middle man Cell phones allow individuals to utilize price discovery, thereby maximizing profits. Utilization of time / under employed Idle time are better utilized by maids, plumbers, taxi drivers. Real time information on weather Weather info for fishermen and right place to fish. Timely information on weather to farmers. Business opportunity Owing wireless telephone kiosk under GRASSO W.B. Grameen Phone, Bangladesh. Employment info Job sites, alerts, call centers
  9. 9. Cases Fisher Friend Project : Qualcomm ( December 2007 ) <ul><li>Access to list of services through specially designed mobile. </li></ul><ul><li>Directly involves 450(initially) participating fishermen along with members of the project team. </li></ul><ul><li>Real time information. </li></ul><ul><li>Weather forecast and market price. </li></ul><ul><li>Where to fish? </li></ul><ul><li>When to venture home ? </li></ul>
  10. 10. Continued…. Grameen Phone, Bangladesh <ul><li>Provide loan for purchasing cell phones </li></ul><ul><li>Micro level finance for setting up Business </li></ul>Auto drivers turn richer with mobiles <ul><li>Established a stronger bond with customers </li></ul><ul><li>Tool of income generation by facilitating </li></ul><ul><li>repeated business </li></ul><ul><li>Reduced unnecessary wandering </li></ul><ul><li>in search of customer </li></ul>
  11. 11. Continued…. <ul><li>Meru has not only helped the unemployed with opportunity to earn but also provided space to manage their personal life. </li></ul><ul><li>Meru helps the drivers by providing the booking through their call centres by tracking the car through High-end GPS and GPRS to ensure real-time cab location and dispatch. This help drivers to better manage and utilise their time and resources. </li></ul>MERU CAB
  12. 12. Continued…. Grameen Sewa Sanchaar organisation(GRASSO): WB <ul><li>Bicycles carrying mobile phones equipped </li></ul><ul><li>with CDMA Wireless Local Loop , to visit </li></ul><ul><li>all the villages </li></ul><ul><li>Telephone services to village doorsteps </li></ul><ul><li>Help villagers start their own small business </li></ul><ul><li>Unemployed men are the owners of </li></ul><ul><li>telephone booths, internet kiosks and vehicles </li></ul><ul><li>that carry agricultural produce </li></ul><ul><li>25 percent of profits from all calls made </li></ul>
  13. 13. <ul><li>The Information Villages Research Project in Pondicherry </li></ul><ul><li>- Value Addition Center </li></ul><ul><li>- Online information available to local users </li></ul><ul><li>“ Sundari, a women labourer in Embalam, was able to negotiate better with a landed proprietor for wages this season. Part of her wage is paid in kind of grain. Knowledge of grain prices in the nearby markets enabled her to make sure that she got the right quantity of grain as wage. “ </li></ul><ul><li>Rural BPO </li></ul><ul><li>Fostera - India’s first rural bpo firm in Krishnagiri district of Tamil Nadu. Providing Jobs for those above 18 who have finished school. Marriage halls are being converted into bpo’s, providing salary of 5K -8K. </li></ul><ul><li>“ Suman Devi, an executive who deals with data mining and sorting out animal husbandry data for the state government, attended high school before she was married at the age of 17. For ten years my life only revolved around managing household chores and family, and usually my husbands income was insufficient, said Suman, who hadn't seen a computer in her life before. ” </li></ul>Cases
  14. 14. Impact of Telecom On Education Challenges Telecom Solutions Scarcity of good teachers Sharing faculty through Video conferencing, web conferencing, on demand and live lectures at remote places Infrastructure ( Library, labs ) Online library and virtual labs Research World wide research collaboration Quality education Made available at affordable cost Uniformity of education Made possible Access to real time and updated Knowledge base and information Made easy
  15. 15. Cases MILLEE M-Education by Tata Indicom <ul><li>Mobile Education to reach the masses for </li></ul><ul><li>remote teaching and Learning for rural </li></ul><ul><li>communities and physically challenged </li></ul><ul><li>masses </li></ul><ul><li>English literacy through games on mobile </li></ul><ul><li>Works on Motorola Razr V3M handset </li></ul><ul><li>35 Successful Commercial Language learning </li></ul><ul><li>Packages </li></ul>
  16. 16. Akshaya project, Kerala <ul><li>Mallapuram, First E- literate village in world. </li></ul><ul><li>100 % E-Literacy was achieved in eight </li></ul><ul><li>districts in Phase 1. </li></ul><ul><li>So Far 3.5 mn beneficiaries were trained. </li></ul><ul><li>First in India to offer online lectures over internet. </li></ul><ul><li>It also works on android platform based tablet. </li></ul><ul><li>With aim to provide Quality Education to the desirable . </li></ul>Initiative of Aegis school Contd…..
  17. 17. Impact of Telecom on Indian Farmers Challenges Solutions by Telecom Real time Weather Information Location based service Crop market information for correct pricing Rural BPO providing information. Cell phones allow individuals to utilize price discovery, thereby maximizing profits. Middle men intervention Could be minimize Agricultural awareness Possible Financial transaction M- Banking Access to real time and updated Knowledge base and information Possible
  18. 18. Cases M-Krishi for Farmers <ul><li>TCS’s Mobile Advisory System </li></ul><ul><li>Network of in-field weather sensors, </li></ul><ul><li>Back-office agricultural experts, </li></ul><ul><li>Data and software that all work in tandem with </li></ul><ul><li>mobile phone apps. </li></ul><ul><li>Award winner in 2010 by Aegis Graham Bell Award for Innovative Platform to deliver personalized and integrated services to farmers </li></ul>
  19. 19. Contd…. <ul><li>Provides crucial, local and customized </li></ul><ul><li>agricultural information for Indian farmers </li></ul><ul><li>via mobile phones </li></ul><ul><li>Information includes crop prices, weather </li></ul><ul><li>updates and other agric – related news. </li></ul><ul><li>75,000 subscribers </li></ul>Reuters Market Light Haryana agriculture department SMS alert Services <ul><li>Free of cost SMS services provided to farmers for agricultural, horticultural, fisheries, animal husbandry and forestry related queries. </li></ul>
  20. 20. Nano-Ganesh by Tata-teleservices E-Choupal : ITC <ul><li>Monitor and switch on irrigation pumps remotely </li></ul><ul><li>5000 farmers in Maharashtra using Nano-Ganesh </li></ul><ul><li>Grand Prize winner in Nokia’s Calling All </li></ul><ul><li>Innovators Contest </li></ul><ul><li>Access to daily prices of a variety of crops in </li></ul><ul><li>india and abroad ,weather forecasts, latest </li></ul><ul><li>farming techniques, and crop insurance </li></ul><ul><li>Covered 10 states,40,000 villages in India </li></ul><ul><li>6500 E-Choupal’s and 4 Million </li></ul><ul><li>farmers are E-empowered </li></ul>Contd…..
  21. 21. Nokia Life Tool Kissan call Center <ul><li>Premium Agriculture service </li></ul><ul><li>Education (Learn English) </li></ul><ul><li>Entertainment </li></ul><ul><li>Professional help and information available </li></ul><ul><li>to farmers at their doorstep. </li></ul><ul><li>Toll free telephone number. </li></ul><ul><li>Connecting the farmers directly with </li></ul><ul><li>agriculture Experts </li></ul>Contd…..
  22. 22. Mobile Banking F acilitate financial inclusion of the rural population. Global: M – Pesa in Kenya, has given the rural population a means to empower themselves through savings and transaction instruments, thereby improving their India: RBI approved banks to appoint for –profit companies as BCs (Business Correspondents) Bharti Airtel, Vodafone India and State bank of India, ICICI respectively signed a JV to make banking services available to India’s unbanked millions.
  23. 23. Impact of Telecom On Health Challenges Solutions by Telecom Functionality of existing Health centers Can be improved Health awareness information Made Possible Consulting specialist doctors Made Possible Ambulance at right time Made Possible Health care for animals Made possible at low cost
  24. 24. E-Healthcare by N- Logue : IIT Chennai Initiative <ul><li>Remote Eye Care consultation with Aravind Eye Hospital </li></ul><ul><li>Multi Video-conferencing to provide medical advice to remote patients located in villages </li></ul>Tele-health : Tamilnadu <ul><li>Web-based Health Referral System by TCS </li></ul><ul><li>and Intel </li></ul><ul><li>Health screening and remote diagnostics </li></ul><ul><li>by specialists </li></ul><ul><li>High-quality healthcare and is hosted on </li></ul><ul><li>TCS' WebHealthCentral portal </li></ul>Cases
  25. 25. Benefits of Telecom Access at the Village-Household Level <ul><li>Low-cost & fast communication </li></ul><ul><li>Increased transparency of Govt. machinery & programs; lowers corruption </li></ul><ul><li>Creates social capital through Networking </li></ul><ul><li>Eliminating the need for cumbersome travel </li></ul><ul><li>Improved Rural Productivity </li></ul>
  26. 26. <ul><li>Government of Kerala initiatives : </li></ul><ul><li>First state in India implemented M-Governance services. </li></ul><ul><li>e-SMS : The official SMS gateway for GoK: It is being used by the </li></ul><ul><li>department officials for intra and inter departmental communication. </li></ul><ul><li>e-SMS has proved to be very effective for sending notifications/alerts etc. </li></ul><ul><li>Bluetooth Kiosks : Important role in information dissemination. Deployed in places like bus-stations, railway stations and airports. Citizens can turn on bluetooth in their handsets and receive information regarding Government schemes, tourism etc on their phones . </li></ul><ul><li>The MCARP : Mobile Crime and Accident Reporting Platform Images are captured using mobile phone cameras by policemen and uploaded to the central server instantaneously via MMS/GPRS. This would empower the control-room for informed decision making </li></ul>
  27. 27. <ul><li>e- Bario Project , Malaysia : e-Bario was designed to bridge the gap between the shy and unexposed students in the village of Bario and their aggressive, well-informed counterparts in Malaysia. </li></ul><ul><li>e-Taninet Project , Malaysia : To Educate community for use of internet to access important and useful information and service on agriculture and biotechnology. </li></ul><ul><li>Linked local learning (LLL) , Kenya: The purpose of this workshop is for the core group to reach a common understanding on learning approaches to the decentralization of agricultural services. </li></ul><ul><li>The Rural – Enlacs project in Chile: Computer initiative in rural multi-grade schools in Chile. A national initiative to enhance learning environments and educational opportunities for Chile’s students and teachers. </li></ul><ul><li>Project Rabta Ghar in Pakistan : The Rabta Ghar telecenters provide telecommunication access and source of income for residents of remote, rural areas. </li></ul>Some Worldwide accepted and Successful projects
  28. 28. Opportunities unlimited <ul><li>Virtual University </li></ul><ul><li>Virtual Hospital </li></ul><ul><li>Training Centre </li></ul><ul><li>Banking Outlet </li></ul><ul><li>Trading Outlet </li></ul><ul><li>Post offices could be sales outlet for telcos and post man as their </li></ul><ul><li>marketing agent in remote areas. </li></ul><ul><li>Agricultural Support centre & Many More. </li></ul>
  29. 29. <ul><li>Telecom is having a significant role at Bottom of the pyramid , however , full potential of the telecom is still not tapped . </li></ul><ul><li>Income generating services for bottom of the pyramid which will in turn ensure next sustainable income from 500mn subscribers. </li></ul><ul><li>Affordable services for bottom of the pyramid . </li></ul><ul><li>Services that highly meets their practical needs and desires. </li></ul><ul><li>Mobile technology innovation for illiterates. </li></ul><ul><li>Business model innovations beyond urban centric Apps, facebooks and twitters of the world for bottom of the pyramid . </li></ul>Take Away
  30. 30. <ul><li>Telecom Regulatory Authority of India ( TRAI ) </li></ul><ul><li>Analysys Mason, Industry Inputs, Assessment of Economic Impact of Wireless Broadband in India </li></ul><ul><li>Telecom India –Online </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li>Ericsson India Pvt Ltd. </li></ul><ul><li> </li></ul>Citations
  31. 31. Aegis School of Business <ul><li>Aegis School of Business is among the top schools in India for telecom </li></ul><ul><li>management, started with support from Bharti Airtel for developing the next </li></ul><ul><li>generation cross functional leaders for telecom industry. Aegis is the first </li></ul><ul><li>school to start Executive Telecom Management in India for working </li></ul><ul><li>executives in Telecom and IT and Business consulting programs. Aegis is </li></ul><ul><li>having academic alliance with Telecom Ecole de Management a leading </li></ul><ul><li>Business School in France. </li></ul><ul><li>Aegis-Leadcap Research and Consulting is a joint initiative of Aegis and </li></ul><ul><li>Leadcap Ventures. We help in finding solutions to the problems currently </li></ul><ul><li>Confronting your organisation. Get a fresh, multi-disciplinary and multi- </li></ul><ul><li>Cultural perspective on any challenge or opportunity your business is facing </li></ul><ul><li>from our high caliber faculty and student consulting teams. </li></ul>Aegis- Leadcap Consulting
  32. 32. <ul><li>Contact: Aegis-Leadcap Research and Consulting, Aegis School of Business and Telecommunication | Mahesh, Plot No.37, Sector 15, | Central Business District (CBD), Belapur | New Mumbai | MH | 400614 | India </li></ul><ul><li>V. P. Chandan, Honorary, Director, Aegis, Email: [email_address] </li></ul><ul><li>Bhupesh Daheria, CEO, Aegis, Email: [email_address] Cell: +91 9820870483 </li></ul><ul><li>Arvindkumar S, Research Consultant, Email: Cell: +91 9373828308 </li></ul><ul><li>Niranjan Kumar, Research Consultant, Email: [email_address] Cell: +91 9892324921 </li></ul><ul><li>Web:|| </li></ul><ul><li>Disclaimer </li></ul><ul><li>This publication has been prepared for general guidance on matter of interest only, and does not constitute professional advice. Thy should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty is given as to the accuracy or completeness of the information contained in publication and to the extent permitted by law, Aegis Consulting and Research wing of Aegis School of Business, its member, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequence of you or anyone else acting , or refraining to act on the information contained in this publication or for any decision based on it. </li></ul><ul><li>© May 2011 by Aegis School of Business and Telecommunication. All rights reserved. Unauthorized use of the material without written permission is strictly prohibited and leads to legal action. </li></ul>
  33. 33. Rural Internet Users Set To Grow By 98% In 2011 Internet users in rural area is projected to rise by 98% to touch 24 million by December 2011 from 12.1 million in December 2010 Source : Press Release ,13 Apr 2011 - IAMAI Annexure I
  34. 34. Source : Analysis Mason Wireless Broadband Revenues from Social Services Annexure II
  35. 35. Quality of basic health in India adversely affected by Poor healthcare Infrastructure <ul><li>Which can be uplifted by Providing e-healthcare services </li></ul><ul><li>through Mobile and ICTs </li></ul>Source : World bank ,Press searches Impact of Telecom On Health Annexure III