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25th February 2002

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When will India’s masses take to computers?

There is no doubt that PC penetration and IT usage in India is abysmally low. But it is not for lack of trying that these vital stats have not climbed to respectable levels. In fact there is no dearth of initiatives taken by the government, associations, research institutions, private firms and even individuals. Vineet Joshi examines these initiatives and attempts to find out what continues to keep computers away from the Indian masses

Ever wondered why personal computer penetration in India is still the most intricate, unsolved and disconcerting “problem” even so many years after the PC first made its appearance in this country? Or why the mere mention of this ‘issue’ makes everyone right from government, industry associations, research bodies and even corporates squirm uncomfortably?

Take a look at some of the disturbing numbers: IT today contributes around 2 percent of India’s GDP, but PC penetration is just about 6 per 1,000 people. Internet penetration, which was expected to give a fillip to PC penetration, has been able to reach just 1 percent of the population, with 10 million users. IT spending as a percentage of GDP is just 0.8 percent. Compare this with countries like China where IT contributes 7 percent of GDP and PC penetration is 16 per thousand people; Malaysia, where IT contributes 5 percent of GDP and PC penetration is 69.4 per thousand; and Thailand where PC penetration is 22 per thousand.

Why have we recorded such dismal figures? The obvious culprits would be lack of government support, lopsided government policy, inadequate private sector investment, negligible R&D, and poor support from NGOs. Surprisingly, none of these can be cited as strong reasons in India. Ground-level examples offer sufficient evidence to qualify the role of government, corporates, R&D units, and NGOs in increasing PC penetration in India.

Rough estimates put the government’s investments at anywhere between Rs 1,000 to 1,500 crore towards various activities aimed at spreading IT among the masses. The government has initiated as many as a thousand pilot projects, the success rate of which, as calculated by the authorities, stands at 40 percent.

The private sector is also not far behind, with companies like NIIT, Infosys, Wipro and TCS having demonstrated innumerable case studies for taking computers to the common man.

Research institutes like IBM Research Labs, Media Labs Asia, NCST, TDIL, C-DAC, the IITs and the NIIT-sponsored Centre for Research in Cognitive Systems, among others, have taken up dozens of challenging projects. They have developed innovative and intriguing products in access devices, wireless technology, machine translation, software applications like text-to-speech, language recognition, etc. In addition, there are several individual efforts like that of Prof. Jhunjhunwala from IIT Madras, who successfully attempted to provide an affordable ‘connectivity and access’ solution. Then there are NGOs like Development Alternatives and Vaancha ICT that have extended support towards bridging the digital divide by taking computers and computer education to rural areas.

So what’s holding back PC penetration? Experts say the time has come to evolve a consolidated line of thinking that derives its wisdom and sagacity from the learning of past successes and failures. They further feel that what’s needed is to identify all factors directly linked with the issue such as access devices, connectivity, and local language software and devise self-sustaining business models for each of them, in addition to focused and customised R&D in each of those areas.

Looking back, the phenomenal successes of STD telephone booths, cable TV, and the ‘white revolution’ brought about by the dairy cooperatives concept, all point to a very clear line of action to speed up PC penetration as well that is, a Self Organised Collaborative Mode. As opposed to planned expansion of telephones adopting a classical engineering model where we have reached 36 million lines in 50 years, the cable TV revolution wherein there was no government regulation has notched up 40 million connections in just five years. The same is true with STD/ISD telephone booths wherein a single line of legislation ”If you operate a telephone booth you will earn 20 percent commission” transformed long-distance telephony in India. And, the Amul dairy cooperatives success clearly demonstrates that if you collect many like-minded small individuals you can create a gigantic, successful organisation.

“It was the absence of policy, a high degree of community participation and self-organising and self-sustaining business dynamics that ensured brilliant successes with STD booths and cable TV,” says Dr Sugata Mitra, chief scientist and senior vice president at NIIT. “So what is required in increasing PC penetration and IT usage is to trigger small events which lead to a self-organised phenomenon. The government’s role should to provide the pipeline and pen initial legislation and let it evolve rather than itself work to make things happen. It’s only when the community feels the desire to absorb IT and makes business sense out of it, will it grow.”

Apart from ‘self-organisation’, experts also suggest a ‘collective and combined approach’ for a multiplying effect in PC penetration figures. When we have such vexing statistics to contend with such as 1 billion people, a 50 percent literacy barrier, a 70 percent language barrier and a huge geographical spread how can a thousand small projects each ostensibly working in a thousand different directions make any perceptible difference?

“Government initiated projects, though brilliant, often fail to commercialise technology, and private companies though successful in limited commercialisation, can’t scale up because of limited funds and restricted social intent,” opines Kiran Karnik, president of the software industry’s apex body Nasscom. “Individual entrepreneurs have brilliant ideas and technology innovation but can’t scale up beyond a point and hence die off. We need to evolve a synergy between various efforts so as to give a collective thrust, which I think will surely lead to visible changes.”

All the above arguments notwithstanding, one ultimately needs to get down to brass tacks: Assuming some form of computing device is available, what compelling reason does a villager or common man have to use it? Though there’s no simple answer, experts concur that it’s a combination of factors and applications: those that require reasonable computing power such as word processing, designing, multimedia, DTP, etc; and those that require connectivity Internet with appropriate content, e-mail, chat, wireless access, etc. So once you have a suitable device you need connectivity. Then comes relevant content to keep the user interested. And of course all this has to be done with local language support built in. Let’s take a look at where we stand on each of these issues.

Access Devices

Apart from the high prices, which ensure that PCs are beyond the reach of most Indians, another issue that is debated among industry analysts is the form, size and shape of an acceptable computing device for the masses. Whether this will turn out to be a small hand-held device, a PC in its current form, or something entirely different, is anybody’s guess.

If it turns out to be the PC in its current avatar, what needs to be reduced drastically is the price. MAIT, the apex body of the Indian hardware industry, is ideally looking at a price tag of Rs 10,000-Rs 15,000, and opines that this should be possible in the next two years. This seems to be a rather tall order, although some attempts at low-priced PCs have already been made by PC manufacturers. Wipro has recently launched a PC for Rs 20,000 based on an AMD processor and the Linux operating system. And there are several other offerings available in the Rs 25,000 range.

Another approach gaining credence is to look at an entirely different form of access device. The most talked about in the industry is the Simputer a low-cost computer with operational computing facilities. Developed by the Simputer Trust (consisting of scientists and developers from the Indian Institute of Science and Encore Software) the device is pegged at Rs 15,000. But even at such a low price level it has not yet been able to command the volumes necessary to justify large-scale manufacturing. Industry observers say that the price should come down to at least Rs 9,000 to make it viable. But officials at Encore Software believe that even at Rs 9,000, a minimum user base of 100,000 is required to support manufacturing.

“You cannot bring the price down initially. Products always enter the market at a higher price, which drops later, once the market builds up,” states Vinnie Mehta, director, MAIT. “But one needs to take risks and have enough financial backing to support the gestation period of 1-2 years. Unfortunately this kind of funding is hard to come by these days.”

Why is that none of the IT industry majors, including prominent players like Wipro, TCS, and NIIT, seem to be interested in funding an innovative product like the Simputer? “Hard to tell,” says Mitra. “Though it is an excellent device for increasing PC penetration, maybe it is ahead of its time. Perhaps it’s not in the right shape and format.”

Mehta offers some pragmatic business logic: “With the current downturn, the confidence level of the industry is so low that it is shying away from any kind of investment, even if the investment has the potential for great future returns.”

Connectivity is everything

Assuming we solve the problem of deploying the right kind of access device, the next question is what will the access device be used for? Everything boils down to connectivity, as 80 percent of computer applications for the masses ”killer apps” such as e-mail would require some form of connectivity. How can this connectivity be provided?

“It should be a self-organising phenomenon similar to cable TV. Let the private companies lay the cables without any restrictions in terms of legislation and hindrances. The government should consider its role in providing infrastructure rather than endlessly promoting the IT for masses concept and initiating small pilot projects. Pilots should be given to individual scientists and entrepreneurs to handle,” says Mitra.

Karnik says paucity of funds for private entrepreneurs and poor marketing by the govt has stalled the spread of PCs

There could be two ways to approach the subject. Either, bringing the cost down in labs and then providing access, or, conversely, laying the access network first and then letting the market dynamics work to bring the cost down. While Prof. Ashok Jhunjhunwala of IIT Madras postulates the former, Mitra favours the latter.

The TeNet Group of Prof. Jhunjhunwala is intently working on bringing the cost of access down from the current level of Rs 45,000 to a more affordable Rs 15,000. His team is also working to bring the cost of Wireless in Local Loop (WLL) connectivity for a given area (within 50 km) to less than a lakh of rupees. “At this level of cost of connectivity, computers will become immediately accessible to around 100 million Indians. This kind of volume will drive further expansion and increase IT usage and hence computer penetration,” says Jhunjhunwala.

Mitra’s primary contention is ‘access first and then cost’. “It’s not that villagers have no money. The costs could be higher to start with. We may have fewer connections initially but the subsequent boom is inevitable. Waiting for the cost of technology to come down and then building access means losing crucial time,” says Mitra.

Delhi-based Vaancha ICT is following a middle approach for building its solar powered wireless broadband communication system for Net connectivity. Though their key objective is to develop the requisite technology as well as ground-level implementation, they are also keeping an eye on price.

“Though we have not determined the price, the entire package would certainly be below the Rs 50,000 mark,” says Brajesh Verma, co-founder, Vaancha ICT. “We plan to create a 45 km wireless local loop on Ethernet powered by solar energy with access points (ICT centres) also running on solar energy. This technology and mode of access will be a great boon as it will allow Internet and telephony to reach even those villages which do not have reliable power access,” says Verma. The company expects to implement a pilot project by the end of this year.

Computing in Indian languages

NIIT’s Mitra says reducing costs will have a major role to play in helping computers find acceptance in India

Computing in India has essentially been the preserve of the English-speaking minority thus far. But with e-governance catching the fancy of the politically influential, Indian language computing may soon get a much-needed boost. In fact with the computerisation of government a hot topic of debate-although still far from being a widespread reality-the local language computing market today is estimated to be over Rs 500 crore (Rs 5 billion).

Small wonder then that companies like Microsoft, Adobe and Quark have announced Indian-language equivalents of their popular software titles. And government-funded research institutes too are involved in developing local language support and applications.

While traditionally the situation has been a bit of a chicken-and-egg problem, trends indicate that local language apps will no longer be a problem once computing devices and network access reach the common man. But one still needs to ask whether we are moving in the right direction.

There are two sides to this issue. One, deploying Indian language content over the Internet and two, innovative software/hardware solutions to utilise content effectively. This would include multilingual operating systems and Web browsers, text-to-speech software, multilingual dictation software, multilingual word processors, machine translation systems, etc. Although compelling content for vernacular users or for that matter anyone residing in rural India-is as scanty as rain in Rajasthan, experts are not overly worried on this count as they feel that content will evolve with time and will be developed as users increase.

“The Internet at the moment has not been able to attract rural India as much as urban India,” states Mitra. “But that shouldn’t worry us. My answer is, just provide access. If, for instance, enough Tamil-speaking people are connected, then automatically, compelling Tamil content will follow. So, we should not break our heads over building multilingual content at the moment.”

Adds Karnik: “The Internet has enough appeal to attract millions with varied cultures, backgrounds and literacy levels. But it will evolve with time as users increase in number.”

So, while content is not an issue, where are we when it comes to hardware and software applications that will enable multilingual computing? “For the IT revolution to be truly successful in India, IT devices need to transcend language and literacy barriers. One of the reasons for poor PC penetration is that the front-end continues to be in English and only five percent of the population can speak English,” says Mehta.

NIIT’s Mitra says reducing costs will have a major role to play in helping computers find acceptance in India

At a recent meet organised by the Technology Development in Indian Languages (TDIL) a department under the Ministry of Communications and Information Technology (MCIT), around 25 companies participated and a hundred different products were displayed. According to Dr Om Vikas, head of the computer development division at MCIT, “National excellence in this millennium and PC penetration will be determined by the extent to which information technology can deliver its potential in local languages. With increasing corporate involvement and government focus in R&D, multilingual computing solutions will no longer be a limiting factor for computer usage.”

It is believed that there are over a hundred companies involved in multilingual application development, around a thousand products are already in the market and another 2,000 projects are in the development phase. TDIL itself has already demonstrated 30 different projects in multilingual research and has set up 13 resource centres and 29 Indian language technology collaborators.

The Centre for Development of Advanced Computing (C-DAC), an autonomous body under the MCIT, has over 25 products supporting multilingual computing already in the market. Some of these are: GIST for supporting Indian languages in DOS, UNIX; ISM Office and Publisher for a Windows-based environment and conventional publishing; iLeap, an Indian language word processor; N-TRANS for translation from and into Indian languages; iPlugin to enable Internet-based applications in Hindi; and, MANTRA, a machine-aided translation tool.

Mumbai-based NCST is also in the process of developing various software and machine translation applications. They have already developed IndiX for Indian language support in Linux; Vividha, a Hindi word processor; and, MaTra, a human-aided machine translation tool. NCST is also in the process of developing a Machine Translation system (from English to Hindi and vice versa, and between other Indian languages).

A huge market

Mehta says provision of low cost access devices and connectivity holds the key to the penetration of PCs in India

In addition to this, various companies like Mega Soft (English & Hindi dictation), IBM Research (Speech Recognition, TTS), Sonata Software (Indian script enabling DTP packages), Softek (database package and accounting software in Hindi, English), Vsoft Technologies (Indian script for Windows), Webdunia and Mithi Software (multilingual e-mail), Lipi Data Systems (printers capable of printing in Devnagari), Centre for Computer Education (multimedia-based Hindi learning package, machine-aided translation system), and the Indian Statistical Institute (optical character recognition system for Devnagari) are all in various stages of developing multi-purpose multi-tasking software applications for Indian languages. All with an eye on the 400-million-strong multilingual market which is expected to emerge in the next couple of years.

So much has transpired in the past one year in the local language computing arena that industry observers today don’t look at it as a stumbling block any longer. “Just one year back, penetrating the Indian market was a Herculean task but today with all the listed achievements, I think reaching the masses in terms of content and local language software and applications will not be tough. What is required now is connectivity and low-cost access devices,” says Vinnie Mehta.

New paradigms always throw up new questions. And in the case of PC penetration and IT usage among the Indian masses, it’s quite clear that there is no one solution that will solve all problems and neither is anything going to happen overnight. So, while there continue to exist dozens of linked problems (literacy, language, geography, content, women/children/adult access, business generation, etc), work needs to continue on pilot projects, case studies and research surveys. But ultimately, it is only an amalgamation of the various ideologies and hypotheses that will throw up a suitable line of action. With this approach and collective initiative, we should find a solution to bringing IT to the common man in India in a meaningful manner. For the sake of the nation, let’s hope this happens sooner rather than later.

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