ICTs for Indian farmers

A 2009 Deloitte Assocham Report on mobile VAS as a means of inclusion speaks about the sheer enormity of the problem of reaching out to a billion plus population to ensure provision of "basic hygiene and sanitation, clean drinking water, basic healthcare, primary education to adequate housing, roads, higher education, banking facilities, disease control, and disease management. Each problem is exacerbated by its sheer magnitude.  (Refer Table 1)."

Thus, India is a country where rural areas in particular are financially excluded. The RBI has officially directed banks to explore ICTs based solutions through the business correspondent model whereby a village can be covered even in the absence of a brick and mortar branch.

Recently, the Mint carried an article about RuPay a card payment network like Visa and masterCard that is revolutionizing how Indian farmers handle money. Through RuPay Kisan (farmer) cards farmers can make electronic payments at lower transaction costs. It is a domestic system launched in 2012 by the National Payment Corporation of India and many banks (national, private, cooperative and rural) provide vards affiliated to it for population in small towns and villages. While RuPay cards are usable at all ATMs, only 25-30% of the point of sale(PoS) machines are compatible and this is being tacked. Nevertheless, such facilities are empowering farmers through ICT enabled financial inclusion.

The Indian USOF  had also initiated a scheme for ICT enabled banking services in rural India on pilot basis in collaboration with BSNL as an adjunct to the Rural Wire Line Scheme. It dis not succeed due to various stakeholder coordination issues but USOF should in my view continue to strive to support such services. 

Responsible Policy Making Needs Sound Regulation

I was impressed by an article published in the Times of India today- "Muddling through Food Security" by Ashok Gulati, Chairman of Commission for Agricultural costs and Prices. Writing about the recently passed food security bill, this economist has succinctly explained the pitfalls of the food subsidy programme proposed to cost Rs 1,30,000 crore at current prices. He has stated that it will probably not achieve its objective of better nutrition, but will drive up our fiscal deficit while diverting precious funds from other critical areas such as sanitation, drinking water and female education needed to address malnutrition and health in our country.  Commenting that, "the art of policy making lies in achieving desired ends with minimal costs" he has pointed out that instruments like conditional cash transfers can achieve desired ends much more efficiently without distorting agri-markets.

I draw attention to this contentious issue as an example of India's desperate need to mandate a full fledged, transparent economic analysis of state funded schemes. Tax payers have a right to know that we are achieving short term growth and equity in efficient ways that will not cause long term harm to our economy. We do have a lot of debate in the media and in the parliament, but it should be based on a structured analysis of the proposed regulation backed by hard facts and figures that policy makers own up responsibility for. Decision makers may not then find it so easy to ignore rationality in favour of other considerations. Placing hard facts and figures in the public domain would empower citizens.

My blog concerns ICTs penetration. This issue is relevant for that as well. In a developing country like India, we have less than satisfactory institutional capabilities, leading at times to less than efficient policy making even when we have sound inputs from within and outside policy making bodies.Regulation that mandates transparent economic analysis and placement of the full justification for policy measures in the public domain can in my view counter regulatory capture and rent seeking.

Take the example of subsidising Universal service.  I have written earlier about USOF India's proposed scheme to subsidise mobile devices.  If regulation mandated a transparent socio-economic cost benefit analysis of this measure necessitating justification that this is the only/best way of increasing mobile penetration among the rural poor, it would help policy makers make better decisions. 

Another  area where much improvement is required in Indian policy making, is that economic analysis of a policy has to capture a much larger canvas as.  has been painted for us by Mr Gulati in his article. We have to  examine the impact of policy making on the sector and economy as a whole rather than conveniently bury our heads in the sand. This reminds me of my concerns about state funded broadband roll outs. Previous posts can be seen under the labels Competition , National Broadband Plans and Broadband Networks.

USOF India's Scheme for Mobile Towers in Disturbed Areas

The Universal Service Obligation Fund of India is soon to sign an MoU with BSNL the incumbent telecom operator (PSU)  for setting up mobile towers in states affected by naxal violence. Repeatedly,

 "BSNL has already floated a notice inviting tender for setting up 1,315 sites of 2G GSM network in left-wing extremist areas of Bihar, Jharkhand, Orissa and West Bengal for five years, which is extendable by two years....There were, however, some differences over costs between BSNL and USOF. " When BSNL was "[a]sked whether the tender calls to set up towers in four states while the Cabinet had cleared setting up mobile sites in nine states,[the BSNL CMD] said the company has already established towers in some naxal affected states, which just need to be maintained....The towers, which have been a long-pending demand of the Home Ministry, will strengthen the telecom network resulting in increased penetration in LWE affected areas and other areas facing security challenges."

In case the entire capital and operating costs are being given for states where towers did not exist earlier, it would seem that USOF could have gone in for bidding to obtain competitive rates. There is no information in the public domain to suggest that other mobile service providers were not willing to participate in this programme.

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.