August 2005

Prospecting rural ICT business

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Drishtee is an India-based organisational platform that provides IT enable services to rural population through a network of village kiosks, which are owned and operated by local villagers, providing electronic access to information and services for rural mass. Drishtee helps in creating rural ICT entrepreneurs by helping them to setup rural kiosks services. Before going into any new area, Drishtee conduct an Assessment Survey to find service customisation needs of kiosks for that area.

Service segmentation and revenue potential for a kiosk
Services that are offered or can be offered through a Drishtee ICT center can be broadly divided into ten categories.

1. e-Government Services
Most of the government services like caste certificate, domicile certificate, copy of land record, license can be availed at the district headquarter tehisil or block office and government is the only provider of these services.

Revenue Potential
Factor affecting e-government service is number of household within 5 km radius Value per month = ((Population/Family size)* 6* Unit cost * 20%)/12 Where 6 is the number of times the service is availed in a year

2. Education
The kiosk can act as a computer-training centre for the panchayat.

Revenue potential
Factors affecting computer education service are population above poverty line (APL), literacy rate, population between age 14 years to 24 years

  • If there is no government support:
    Revenue = (APL percent* Literacy rate* Youth percent * 10% * Unit cost)/12
  • If government supports the fee
    Revenue per village = ((APL percent * Literacy rate * Youth percent * 20% * Unit cost) (BPL* Literacy rate* Youth percent * 5% * Unit cost))/12

3. Business Process Outsourcing
The kiosk can act as a low end BPO center. Government data entries like Below Poverty Line data entry, pension scheme data entry are being extended to the kiosk.

Potential revenue
Factor effecting BPO service is computer literate population
Value = Computer trained manpower * 25 % * 5000 * 10%
Where 5000 is the number of data entries made in a year per person

4. Health
Basic consultation with doctors by sharing information and picture and fixing appointment with specialised doctor are few services, which have been successfully deployed at kiosk.

Revenue potential
Factor affecting computer education service is above poverty line household within 5 KM radius.
Value = ((APL population/Family size)* 15% * unit incentive) /12

5. e-Commerce
Rural to urban e-commerce through the kiosk establishes a communication link between the buyer and the rural artisans and eliminates the middlemen.

Revenue potential
Factor affecting is population within 5 KM radius.
Value = (Population * 5%*Unit incentive)/12

6. Desktop Publishing (DTP)
Kiosk being the only computer in most panchayats, it gets all typing jobs of the villages. Printing of agreement is another service the kiosk provides.

Revenue potential
Factor affecting is population above poverty line within 5 KM radius.
Value = ((APL Population/Family size) * 50% * 3 * Unit cost)/12
Where 3 stands for the frequency of service availed in a year

7. Commercial services
Kiosk offer a channel for corporate services like insurance, financing etc having interest in rural India to reach the villagers.

Revenue potential
Value = (APL population/Family size) * 5% * incentive

8. Agriculture
Agri-advisory services, commodity market price, information and reference about agri inputs are the services that the farmers avail at the kiosk.

Revenue potential
Factor affecting is landed farmers within 5 KM radius.
Value = (Total No. of Land Holdings*10%)/12

9. Communication
Communication service like email and net telephony at a kiosk mostly depends on the migrating population of the village.

Revenue potential
Factor affecting is population above poverty line within 5 KM radius and the migrated population.
Value = (Migrating population * 10% * Unit Price) + (APL population * 5% * Unit Price))

10. Entertainment
Movie shows at kiosks and cable TV to home are services that the villagers are ready to buy.

Revenue potential
Factor affecting is household above poverty line within 5 KM radius.
Value = (APL population/Family size) * 20% * unit monthly cost 

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