pc kiosk trends in rural india.doc

8/14/2019 pc kiosk trends in rural india.doc

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PC Kiosk Trends in Rural India

Kentaro Toyama1

Karishma Kiri2

Deepak Menon2

Joyojeet Pal3Suneet Sethi2

Janaki Srinivasan4

1Microsoft esearch

!an"alore# $n%ia

2Microsoft &orporation

'ashin"ton# (S)

Microsoft $n%ia Pvt *t%+ur"aon,&hennai# $n%ia

3(niversity of

&alifornia#

!erkeley#&alifornia# (S)

4$n%ian $nstitute of

$nformation

Technolo"y#!an"alore# $n%ia

Abstract

We present a series of preliminary, quantitative results on rural PC kiosks in India. Ananalysis of the data confirms many expected trends and correlations and shows that

kiosks still face the challenge of sustainaility as a usiness.

!his study is ased on questionnaires presented to kiosk operators and customers of

kiosks operated or franchised y "rishtee and n#$ogue, two for#profit rural kioskcompanies that operate in various geographies throughout India. %ecurring surveys are

eing run with three questionnaires concerning the daily operation and demographic

context of the kiosks. !he recurring questionnaires will e repeated once a quarter for

three years& the results for this paper are from the first two sets only.

Introduction

ural P& kiosks are one manifestation of various attempts to apply information an%

communication technolo"y for socio-economic %evelopment .$&T4D/0 Kiosks

.sometimes referre% to as telecenters/ can e thou"ht of as $nternet cafes for ruralvilla"es# ith one or more connecte% P&s availale for share% use y villa"e resi%ents0

They %iffer "reatly from uran $nternet cafes# hoever# in that the operational challen"es

an% user nee%s of remote rural villa"es are apprecialy %ifferent from that of cities0 uralkiosks typically offer a roa% ran"e of services an% applications specialie% for rural

areas# hereas uran cafs ten% to focus purely on $nternet access an% stan%ar% computer

applications0

Kiosks are initiate% y various kiosk project a"encies# hich i%entify one or morepeople per rural villa"e to act as a kiosk operator0 $n many cases# the kiosk operator is

also the kiosk oner# in hich case the a"ency takes on a franchise mo%el# ith operators

as franchisees or rural entrepreneurs0!y some estimates# there are as many as 156 rural P&-kiosk projects across $n%ia#

some of hich alrea%y have# or are plannin"# thousan%s of installments .Toyama et al0#

1Seminar on Policy 7ptions an% Mo%els for !ri%"in" Di"ital Divi%es# March 13-14# 2665# Tampere#

8inlan%0 8or further information# please contact kentoy9microsoft0com0


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2664/0 Most of these projects ere starte% ithin the last five years# ri%in" on $n%ia:s

oomin" $T in%ustry0 eflectin" the nation:s %iversity# these initiatives %iffer in "oals#

mo%els# operatin" para%i"ms# an% "eo"raphic %istriution0 ;very sector is involve% pecte% hen

the orl%:s most a%vance% technolo"ies are %roppe% in the mi%%le of farmin"

communities# "reat innovation is re?uire% at the interface# oth technically an% in termsof sustainale usiness mo%els0

$n this paper# e present fin%in"s from a series of ?uestionnaires orally %elivere% to

kiosk operators an% customers from kiosks initiate% y to prominent $n%ian kiosk

a"encies# Drishtee an% n-*o"ue0

Background on the Project Agencies

!oth Drishtee an% n-*o"ue are for-profit companies0 They oth seek to sustain

themselves as franchise usinesses# hile maintainin" the "oal of %eliverin" relevantservices for rural socio-economic %evelopment throu"h connecte% P&s0

Drishtee

Drishtee spun off from an $T services company# ith the "oal of @connectin" $n%ia

villa"e y villa"eA .Drishtee# 2665/0 $ts ori"inal focus as on provi%in" e-"overnmentservices to rural villa"es an% to this en%# it has computerie% a numer of "overnmentservices .e0"0# irth certificate applications# vehicle licensin"# etc0/ in the re"ions in hich

it operates0 $n a%%ition# it forms partnerships ith ankin"# insurance# an% other

in%ustries to rin" commercial services to rural villa"es0 Drishtee sells kiosk start-up kitsconsistin" of necessary har%are an% provi%es assistance ith loans here necessary0

Kiosk services are provi%e% throu"h Drishtee:s e portal# for hich kiosk operators are

e>pecte% to pay a monthly fee# as ell as per-transaction costs for online transactions0Drishtee spen%s consi%erale effort on choosin" host villa"es as ell as on selectin"

an% trainin" the operators ho run their kiosks0 Drishtee seeks certain characteristics in

the villa"es an% operators ith hom they ork < villa"es shoul% have a population

"reater than 5666# operators shoul% have un%er"one 12 years of stan%ar% schoolin"# etc0$n the past# they have run pro"rams to help kiosk operators increase their revenue an%

con%ucte% evaluations of their successful kiosks to %etermine ho est to choose future

sites for e>pansion0Drishtee operates appro>imately 566 kiosks# primarily in the northern an% eastern

states of $n%ia0

n-Logue


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n-*o"ue as foun%e% y the faculty of the Telecommunications an% &omputer

=etorks .Te=et/ "roup at the $n%ian $nstitute of Technolo"y# Ma%ras# @to si"nificantlyenhance the ?uality of life of every rural $n%ian y %rivin" the %i"ital revolution

profitalyA .n-*o"ue# 2665/0 The Te=et "roup %evelope% corDect ireless local-loop

technolo"y# hich remains at the heart of n-*o"ue:s usiness of provi%in" ruralconnectivity0 n-*o"ue seeks entrepreneurs to act as @local service provi%ersA .*SPs/#

ho run a re"ional kiosk usiness ase% aroun% a corDect toer that provi%es phone

services an% $nternet connectivity0 ;ach *SP is e>pecte% to set up as many kiosks as itre?uires to sustain itself0 n-*o"ue shares profits an% losses ith the *SP0

*ike Drishtee# n-*o"ue sells kiosk start-up kits consistin" of the necessary har%are

an% offers assistance ith loans here nee%e%0 (nlike Drishtee# its revenue comes from

provi%in" phone service an% connectivity# for hich it char"es a per-hour fee or a fi>e%monthly fee for unlimite% access0

n-*o"ue operates primarily in $n%ia:s southern an% estern states0 Thus far# n-*o"ue

has focuse% on rapi% e>pansion across several states# ith over 36 *SPs an%

appro>imately 2366 kiosks total0

!oth a"encies are firmly committe% to fin%in" a sustainale usiness mo%el hilealso impactin" poor rural villa"es0 They have een in operation for several years each#

an% continue to pursue their ori"inal missions0

Research Methodology

'e are in the process of a%ministerin" recurrin" surveys over to years# for a numerof n-*o"ue an% Drishtee kiosks0 There are three ?uestionnairesB .1/ a aseline

?uestionnaire for each kiosk villa"e# %elivere% to the kiosk operatorC .2/ a recurrin"

?uestionnaire for kiosk operatorsC .3/ a recurrin" ?uestionnaire for kiosk customers0 )llthree ?uestionnaires have eteen 56-6 ?uestions# ith a close% set of responses formost ?uestions .i0e0# there are very fe open-en%e% ?uestions/0 The aseline

?uestionnaire as %elivere% just once to the kiosk operator in the autumn of 26640 The

other to are ein" %elivere% once every three months# ith the first one coinci%ent iththe aseline ?uestionnaire0 To sets of the recurrin" ?uestionnaires have een complete%

so far0 Sample ?uestions from the ?uestionnaire are provi%e% in the appen%ices0

156 kiosks ere chosen for Drishtee an% 156 for n-*o"ue# althou"h Drishtee kioskshave een roken into to atches# ith to sets of 5 kiosks alternatin"0 8or each

kiosk# one operator an% five customers ere interviee%0 Thus# each time the surveys

are con%ucte%# e complete a total of 225 ?uestionnaires for kiosk operators an% 1125 for

kiosk customers0To our knole%"e# this is the only survey thus far %irecte% at rural kiosk operators

an% customers at this scale in $n%ia0

8or Drishtee# the first set of surveys as un%ertaken in Sirsa %istrict .Earyana state/#Ma%huani .!ihar/# an% Sonitpur .)ssam/C this first set inclu%es kiosks hich have een

in operation for over si> months0 The secon% set ere from *akhimpur .)ssam/#

+ola"hat .)ssam/# an% Jaipur .ajasthan/# evenly split eteen ne kiosks less than tomonths ol% an% estalishe% kiosks that have een in operation for to years0 8or n-


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*o"ue# all stu%ies ere con%ucte% in Thiruvallur# Faniyama%i# Thirupattur#

)lla"umalai# !havani# Myla# all in Tamil =a%u state# an% Man%ya# in KarnatakaC all

kiosks ha% een in operation for over si> months at the time of the first ?uestionnaire0Surveys ere con%ucte% y employees of Drishtee an% n-*o"ue hose primary

responsiilities are to a%minister these surveys# un%er a contractual a"reement ith the

to a"encies0'e are usin" the first year of the stu%y to iron out metho%olo"ical issues0 esults

presente% in this paper shoul% e taken as preliminary results# hich ill re?uire

confirmation in Gear To0

Possible sources o bias and noise! Several forms of ias or inaccuracy may e>ist un%er

the current metho%olo"y0 Some of these prolems ere %ue to initial %ifficulties puttin"

the stu%y in place# an% these shoul% %ecrease in the secon% year of the stu%y08irst# ecause the ?uestionnaires are ein" a%ministere% y employees of the project

a"ency# there may e ias here the respon%ents "ive ansers that they think may rin"

more favor to them from the kiosk a"encies0

More prolematic is that the %ue to the len"th of time it takes to collect the %ata.appro>imately H6-I6 minutes per ?uestionnaire/# oth the survey takers an% the

respon%ents have some incentive to provi%e ?uick ansers ithout thinkin" throu"hthem0 !ase% on informal %iscussions ith those %eliverin" the surveys# this issue %oes

appear to e a factor for occasional respon%ents0

The kiosks ere chosen from %istricts selecte% y n-*o"ue an% Drishtee0 Thus#althou"h e have a "oo% representation of kiosks in those %istricts# the results may not

necessarily e representative of n-*o"ue an% Drishtee kiosks overall0

8inally# there may e noisiness in the %ata# especially here ?uantitative ?uestions are

ein" aske% of respon%ents ho may not e accustome% to measurin" the ?uantities in?uestion0 8or e>ample# one of the survey ?uestions asks ho far the kiosk is from the

respon%ent:s home# ith co%in" to the half-kilometer0 $t is not clear that respon%ents

oul% e ale to anser such ?uestions accurately0$n spite of these potential issues# spot checks on the %ata su""est that reasonale %ata

is ein" collecte% for the most part# ith no easily %etectale iases0 $n a%%ition# for

those ?uestionnaires %elivere% to the same respon%ent across the to %ata sets "athere%so far .taken ith to months in eteen/ there is consistency in responses0

Results

!elo e hi"hli"ht the more interestin" fin%in"s from the surveys0

Custo"er De"ogra#hics

Kiosk customers ten% to e youn"# ith 36 eteen the a"es of 1I-25 an% another

35 eteen 2H an% 350 *evels of e%ucation are sprea% rou"hly evenly across %ifferentlevels of accomplishment# althou"h those ith less than 4 years of primary schoolin" an%

those ith post-"ra%uate %e"rees are rare0

The pre%ominant users of kiosks are stu%ents0 $n fact# in or%er to "et a reasonalesample of other customers# our surveys ere intentionally restricte% to e %elivere% to a


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ma>imum of only to stu%ents .out of five respon%ents/ per kiosk# an% all kiosks easily

saturate% this ?uota0

7ne interestin" fact is that the "en%er of kiosk customers very consistently mirrorsthat of the operator0 7verhelmin"ly# more "irls an% omen visit kiosks hen the

operator is female# an% almost no omen visit kiosks run y men0 This is likely %ue to

cultural arriers to men an% omen interactin" in one-to-one outsi%e of familialrelationships0

Kiosk $#eration

Kiosk marketin" appears most effective throu"h or% of mouth# ith over H6 of

respon%ents havin" chosen to make their first visit to a kiosk ase% on hearin" from

frien%s an% family0 )s most kiosk operators make some effort to market services to theircommunities throu"h villa"e assemlies or throu"h pamphlets# so this reflects theories of

%iffusion of innovation that emphasie the importance of personal netorks in

technolo"y a%option0 This is consistent ith %ata hich su""ests that local champions

are necessary to ai% a%option of kiosk use .&olle an% oman# 2661/06 of kiosk customers report that the kiosk operator han%les all transactions on the

computer# an% that they remain unale to use a computer0

%er&ices

)lthou"h computer skills e%ucation is hi"hly sou"ht y rural kiosks customers

.amon" 15 of customers/# more n-*o"ue kiosk customers visit a kiosk for

entertainment .35 for e0"0# "ames# music# movies/ an% more Drishtee customers visit

their kiosks for e-"overnment applications .35/# %esktop pulishin" .35/# an% otheractivities# than either %o for computer trainin"0 These %ifferences are %ue to hat the

kiosk operators market in the villa"e# as ell as# the type of services availale from each

a"ency0 Drishtee# in particular# e"an ith a focus on e-"overnment applications# hichmay e reflecte% in this %ata0

Despite the relative fre?uency of use of these applications# computer e%ucation

remains a major revenue "enerator as cost for computer courses for a monthly ran"eeteen s0 35-466 for 4- hours of classes a month# hereas other services typically

rin" only eteen s0 15-36 per transaction0

) numer of services are consistently re?ueste%B lan"ua"e courses# income-

"eneratin" services# services to support a"riculture# asic computer e%ucation# an% e-"overnment0

%ustainability

Most critical for those intereste% in kiosk sustainaility# avera"e monthly income at

kiosks remains lo# ith oth mean an% me%ian at appro>imately s0 2666 per month#an% this is elo the tar"et reak-even income %esire% y either company .eteen s0

3666 an% 5666# %epen%in" on terms of the loan# cost of connectivity# an% the initial

capital e>pen%iture on har%are/0 This %ata is consistent ith that oserve% in other

stu%ies .Dhaan# 2664C Srinivasan# 2664/0 )lmost ithout e>ception# kiosk operators %o


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not see the kiosk as ein" the source of their primary revenue0 $t is still unclear hether

this ill chan"e over time as more relevant services ecome availale0

The numer of %aily kiosk customers is lo# ith nearly a thir% to a half of the kiosksreportin" less than five customers per %ay0 The rate of return use is hi"h# hoever# ith

nearly half claimin" to e certain to revisit kiosks# an% another 26-36 su""estin" they

are likely to %o so0 $t is not clear at this point in the stu%y hether more time is re?uire%for information aout the value of the kiosk to sprea%# or hether the kiosks simply %o

not provi%e sufficient value to their communities0

Despite the lo revenue# kiosk operators i%ely report satisfaction ith their kioskusinesses0 Most appear to run kiosks as a si%e usiness that is not their primary

occupation .most fre?uently# farmin" on one% lan%/0 )t the same time# e>perience%

kiosk operators appear averse to openin" a secon% kiosk# ith over of respon%ents

not seekin" another such usiness0 7f those ho are consi%erin" openin" another kiosk#revenues top s0 3666 per month0

Discussion

Sustainaility as a usiness for kiosks currently remains %ifficult0 There is a

fun%amental challen"e pose% y the fact that the poorest communities# here socio-economic %evelopment is most %esire%# are e>actly the communities hose economies

are too small to sustain a connecte% P&0 $n%ee%# in many of the lar"er villa"es in rural

$n%ia# $nternet cafes sprout up spontaneously# as local entrepreneurs see clear value insettin" up shop0 The ?uestion is hether kiosks in villa"es ith smaller economies can

e ma%e to %eliver enou"h a%%itional value to support themselves0 This also raises an

important ?uestion in the short-term on hether kiosk projects shoul% e seen as an

entrepreneurial space# or hether a susi%ie%# pulic-utility mo%el is a reasonalealternative vie0

7n the ethno"raphic si%e# the hi"hly varie% re"ional conte>ts un%er hich kiosksoperate create critical invisile ias elements that can un%ermine any serious statisticalork0 There is further ork to e %one in a %etaile% re"ional analysis of rural locations

here kiosks are successful0

$n the meanhile# Drishtee an% n-*o"ue continue to ork har% to fin% a vialeusiness mo%el0 ealiin" that a comination of computer-relate% services comine%

ith non-computer-relate% services can sustain a kiosk as a hole# they encoura"e

services that "o eyon% the connecte% P such as vocational trainin" an% petty tra%e0!oth also continue to seek applications an% services that help "enerate "reater income for

villa"e resi%ents hile also savin" them money in every%ay activities0

8or kiosk operators# the comination of reasonaly hi"h satisfaction# even hile

reak-even revenue is not ein" "enerate% su""ests that non-economic enefits are ein"felt0 )nec%otal evi%ence# as ell as evi%ence from ethno"raphic stu%ies .Srinivasan#

2664/# su""ests that kiosk operators often "ain self-confi%ence an% stature in the

community hen they are associate% ith computers0

Ackno'ledge"ents! 'e oul% like to thank *isa 7lfert for provi%in" "enerous inputs

into the ?uestionnaire0 The staff at n-*o"ue an% Drishtee has een asolutely invalualeCthis stu%y coul% not have een performe% ithout their help an% tireless efforts0


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Reerences

&olle# 0# an% 0 oman0 .2661/0 Telecenter ;nvironment in 26620'ournal of "evelopment

&ommunication 12.2/B 1-150

Dhaan# F0 .2664/0 &ritical Success 8actors for ural $&T Projects in $n%iaB ) stu%y of n-*o"ue

projects at Paal an% !aramati0Masters Thesis# Mehta School of Mana"ement# $n%ian $nstitute ofTechnolo"y# !omay0

Drishtee .2665/0 httpB,,0%rishtee0com0

n-*o"ue .2665/0 httpB,,0n-lo"ue0com0

Srinivasan# J0 .2664/0 The effects of e-"overnance implementation on omenB a stu%y of the

Sustainale )ccess in ural $n%ia .S)$/ project# Ma%urai0 Masters Thesis# $n%ian $nstitute of

$nformation Technolo"y# !an"alore0

Toyama# K0# K0 Kiri# M0 *akshmi atan# )0 =ileshar# 0 Fe%ashree# 0 80 Mac+re"or0 .2665/0

ural Kiosks in $n%ia0 Microsoft esearch Technical eport# MS-T-2664-14H0

A##endi( A! Kiosk $#erator )uestionnaire

The folloin" are the kin% of ?uestions aske% of kiosk operators0 The actual

?uestionnaire as %elivere% orally after ein" consi%eraly reor%e% an% translate% to

the local lan"ua"e .for clarity/C some ?uestions ere roken into several su-?uestions#an% almost all responses ere co%e% into a close% set of potential responses0 7pen-en%e%

?uestions are in italics0

Demo"raphic ack"roun%B

Eo lon" have you live% in the villa"eL

'hat is the hi"hest level of e%ucation you have complete%L

'hat is your a"e "roupL

Do you live in a joint family or a nuclear familyL

'ho is the chief a"e earner .&';/ in your family# an% hat is your relation to

him,herL

!esi%es the &';# ho are all of the other family memers permanently resi%in" ith

you in your househol%# an% hat is your relationship ith themL 'hat is the main source of income for your househol%L

'hat is the comine% monthly househol% incomeL

'hat is the make-up of professions in your villa"eL

'hat amenities are availale in your villa"e .i0e0# phone# school# etc0/L

Kiosk operationB


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Does anyone in the family help you ith the operation of the kioskL 'ho are theyL

'hat is the %istance from your house to the kioskL Eo %o you travel to the kioskL

Does anyone in your family also on a kioskL

Eo lon" have you een runnin" the kioskL

'hat are the kiosk operatin" hoursL

'here is the kiosk locate%L Eo far is it from nearest major roa%# nearest lock

office# etc0NL

Eo lon" %i% it take for you to learn aout operatin" the computerL

Do you allo customers to operate the computer on their onL

'hat computer services %o you offer at your kioskL

'hat %o you char"e for each serviceL

Do you offer non-computer services at your kioskL $f so# hatL

)re you satisfie% overall ith your kiosk usinessL

Eo %i% you pay for the initial cost of the kioskL

'hat costs %o you incur on a monthly asis for the kioskL

'hat %o you earn monthly from operation of the kiosk aloneL

'hat is your har%are,softare confi"urationL

&ustomersB

Eo many customers %o you "et a %ay .separate eeken%s , eek%ays/L

'hat are the peak timesL

'here %o the customers come from .kiosk villa"e or elsehere/L

'hat %emo"raphics typify your customersL

o 7ccupationo )"e

o +en%er

'hat are the main services that customers useL

'hat services are most re?ueste% y customers .even if they are not offere%/L

'hat mo%e of payment %o the customers useL

7therB

'hat prompte% you to open the kioskL

What support, if any, does the local government afford to you for operation of thekiosk(

'oul% you consi%er openin" another kioskL

What difficulties do you face with the kiosk(


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A##endi( B! Kiosk Custo"er )uestionnaire

The folloin" are the kin% of ?uestions aske% of kiosk customers0 )s ith theoperator ?uestionnaire# the actual ?uestionnaire as a%apte% from these ?uestions0

Demo"raphic ack"roun%B

'hat is your professionL

Eo much e%ucation have you complete%L

'hat is your a"e "roupL

Do you live in a joint family or a nuclear familyL

'ho is the chief a"e earner .&';/ in your family# an% hat is your relation to

him,herL

!esi%es the &';# ho are all of the other family memers permanently resi%in" ith

you in your househol%# an% hat is your relationship ith themL

'hat is the main source of income for your househol%L 'hat is the comine% monthly househol% incomeL

'hich of the folloin" appliances %o you onL Telephone# refri"erator# to-

heeler# etc0

Kiosk visitsB

Eo %i% you learn aout the kioskL

'ho else from your family has visite% the kioskL

Eo far %o you live from the kioskL

Eo %o you travel to the kioskL

Eo often %o you visit the kioskL

Eo many times have you visite% the kiosk# in totalL

Do you plan visits to the kiosk or "o spontaneouslyL

'hat %ays,time-of-%ays %o you typically visit the kioskL

Do you allocate a monthly u%"et for kiosk servicesL

Kiosk servicesB

'hat services have you use% at the kioskL

'hat services %o you use the most fre?uentlyL

)re you satisfie% ith the folloin"L

o Service char"es

o an"e of services provi%e%

o Ouality of services .roken %on y services use%/

Eo have the services ai%e% youL .lar"e "ri% of a close% set of possile ansers/

Do you operate the computer yourself# or %oes the operatorL

Are there any additional services you would like to see at the kiosk(


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pc kiosk trends in rural india.doc