Markets Miracles-Internet.org

Under the label  Market Efficiency Gap, I have written earlier about How Markets Address Access Gaps. This post was about an Indian telecom operator creating awareness about mobile internet in rural markets.

Continuing with this topic, another example of service providers going out of their way to develop markets is seen in a new initiative called Internet.org to increase access to the internet "aimed at drastically cutting the cost of delivering basic Internet services on mobile phones, particularly in developing countries. "

This involves a partnership between big service providers such as  Facebook, Samsung, Nokia, Qualcomm and Ericsson etc. 

"The companies intend to accomplish their goal in part by simplifying phone applications so they run more efficiently and by improving the components of phones and networks so that they transmit more data while using less battery power."

This makes business sense when we understand the need to find new markets as the developed world nears 50% plus penetration levels ad to tap into potential markets in developing countries. 

Thus, it is reported that,

"Poorer countries in Asia, Africa and Latin America present the biggest opportunity to reach new customers — if companies can figure out how to get people there online at low cost.....The immediate goals of the new coalition are to cut the cost of providing mobile Internet services to 1 percent of its current level within five to 10 years by improving the efficiency of Internet networks and mobile phone software. The group also hopes to develop new business models that would allow phone companies to provide simple services like e-mail, search and social networks for little or no charge."

ICTs for Rural Healthcare

I had written recently about USA's refurbished rural healthcare programme and that Indian USOF could study the same for guidance on do's and dont's.

A very inspiring example of use of ICTs for rural healthcare, in this case maternity and neo natal healthcare is reported in an article "ASHA 2.0: Barmer block’s healing touch on tablets."

ASHA (Accredited Social Health Activist) workers in rural Rajasthan's Barmer district have been equipped with tablets which are helping them and the beneficiaries of the Governments's health benefits programme to better track maternal health while also generating interest in ICTs in rural women. Rajasthan is one of the  very conservative state of India.

My own experience with the Sanchar Shakti project was that rural women take  to ICTs  very rapidly with great benefits. One of the projects is being implemented in Ajmer district of Rajasthan  where rural women are keen as any other to improve their and their daughters' lot through information and ICT enabled  services. A full description of the implementation experience so far may be read at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2302471.

India's Massisve Potential for Online Services

A report from comScore titled,  2013 India Digital Future in Focus report provides an insight into India's growth in the online space with the following highlights:

• At 73.9 million home and work internet users, the Indian online population currently ranks as the 3rd largest in the world after China and the U.S.
• With 75 percent of its internet users under the age of 35, India has the youngest skewing online population among BRIC countries.
• Across all age and gender groups, Women between the ages of 35-44 are the heaviest internet users in the Indian market.
• The Indian blogging audience grew 48 percent in the past year to 36 million visitors, while 26 percent of category traffic comes from mobile phones and tablets.
• 54 million internet users in India watched online videos on their computer, representing a 27-percent increase over the past year.

A reading of the whitepaper reveals the huge potential for online services and content in India. This includes e-commerce, financial services, real estate, travel, social networking, entertainment and news. This can be expected from a young country with growing literacy rates and generally poor infrastructure. Broadband/internet are the bridge across infrastructure/facilities gaps which enables  apparitions to be fulfilled and promotes empowerment. Interestingly blogging is growing rapidly in India and I guess new users like me get added every day!

On the technology/device side it becomes clear that mobile devices and services are what is enabling the rapid increase in consumption of online services.

Previous posts on Broadband Ecosystem and Mobile VAS, Mobile Education etc. may also be of interest.

The Demand Side of Broadband Expansion-Telemedicine

As per the telecom live magazine (August issue) the Department of Telecommunications is collaborating with other ministries/ departments to establish the utility of the NOFN. This includes the Ministry of Health & Family Welfare which has reportedly stated in an inter ministerial meeting held in June 2013 that fibre connectivity and computers are critical for telemedicine applications. There is no doubt about that but a proper and detailed assessment of needs and gaps would be critical for BBNL to usefully boost telemedicine in rural India in a systematic manner.

We could learn something from USA 's experience. It has for the past 15 years run a programe to subsiise connectivity fo rural healthcare. 

As per an article titled, "FCC Rural Health Care Program coming up woefully short" in November 2010 a Government audit  said that the FCC "has not conducted an assessment of the telecommunications needs of rural healthcare providers as it has managed the primary Rural Health Care Program, which limits FCC's ability to determine how well the program has addressed those needs." In addition, government auditors found that the FCC has not developed specific performance goals for the Rural Health Care Program and has developed "ineffective" performance measures." 

However another article, "$400 million FCC fund to bolster rural telemedicine networks," describes the Federal Communications Commission plan to expand on the above-mentioned programme to " make up to $400 million available to healthcare providers in order to create and expand telemedicine networks nationwide, linking urban medical centers to rural clinics while providing greater access to medical specialists and instant access to electronic health records. "

It is said that, 

"According to the FCC, the Healthcare Connect Fund could cut the cost of broadband healthcare networks in half, through group purchases by consortia and other efficiencies. The fund will provide a 65 percent discount on broadband services, equipment and connections to research and education networks, and healthcare provider-constructed and owned facilities (if shown to be the most cost-effective connectivity option), while requiring a 35 percent HCP contribution.To be eligible for the funding, applicants must be public or not-for-profit hospitals, rural health clinics, community health centers, health centers serving migrants, community mental health centers, local health departments or agencies, post-secondary educational institutions/teaching hospitals/medical schools, or a consortia of the above."

USOF India needs to learn from successes and pitfalls of such initiatives while coming out with specific programmes to address demand side of the broadband ecosystem.

China's Broadband Boost

My last post described how China Mobile's technology choice and order placements would benefit Indian operators' plans for 4G roll outs.

It is reported that,

"China's cabinet has recently elevated national broadband development as a national strategy and has announced an implementation timeline for its development over the next eight years.  .The plan will also be carried out in three different stages, with fiber optic networks and 3G mobile coverage to be facilitated in 2013, while broadband coverage will be expanded from 2014 to 2015. Broadband network and technology updates will be the key task from 2016 to 2020."

As I mentioned earlier these plans should boost the mobile broadband ecosystem as a whole and benefit the world at large.

Achieving Universal Service and Digital Progress in a Connected World.

If readers have ever wondered about the title of my blog. Here is an answer.

The Mint today carries an article about "Indian telcos' 4G Plans get[ting] an unexpected boost." This article highlights the benefits of China Mobile Ltd's plans to "purchase equipment worth more than $7 billion for a network based on a new technology standard, boosting its popularity, and potentially increasing the availability of phones and network equipment based on the standard and lowering their costs."

So far, Indian operators desiring to roll out pan India 4G services have been constrained by high cost of equipment and handsets. They possess 4G TD LTE spectrum. This is different from US and European operators' 4G LTE-FDD services meaning that much of the international manufacturing is based on the FDD spectrum standard. China's interest and patronage will give the former technology's supply and overall eco-system the required critical mass helping reduce prices and increase range and availability of equipment.

I think that the question stands answered. It is a "connected world" as far as universal access to state of art telecom services goes.

Avoiding the Recreation of Monopolies in the Age of Superfast Broadband

I have been writing about this subject quite often. I worry that in our enthusiasm to provide universal access to high speed broadband on an urgent basis, nations who are going in for incumbent centric OFC roll out are erring on the side of monopoly recreation and regulatory headaches apart from all the ill effects of non competitive service provision.

It would appear that similar concerns are being expressed vis-a-vis the rural roll of broadband network in UK. Lack of competition in selection of Universal Service Providers runs the risk of higher than required costs in the short run apart from the usual problems associated with monopoly service provision in the long run. Australia's NBN has been subject to similar criticism.

Quite predictably, Indian USOF's project whereby incumbent BSNL is to to roll out 2199 mobile towers in insurgency prone rural areas is reportedly  running into cost issues even before the project has taken off.

Please see previous posts on competition and National Broadband Plans and Competition.