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7 | Creating viable

7 | Creating viable business models for inclusive growth through the National Optical Fiber Network Healthcare Current State • 66 percent of rural Indians do not have access to critical medicines and 31 percent of the rural population travels more than 30 kilometers to seek health care 12 Connected services that will be useful • Remote tele-consultations • Health-related information through mobile phones/ village kiosks Potential benefits • Specialist advice from doctors in urban hospitals • Information on doctors, diseases, medicines and vaccination Banking Current State • Nearly 70 percent of the Indian population resides in rural areas 13 ; however, approximately 61 percent of the rural population remains unbanked 14 • As of March 2012, only 1,20,355 banking outlets in villages were being served by Business Correspondents 15 Connected services that will be useful • Banking services nearer home • Information related to loans and insurance Potential benefits • Access to basic banking services • Access to information on banking products, loan rates, insurance schemes through mobile phones/village kiosks Agriculture Current State • 41 percent farmers require vital agricultural information on a daily basis, and in the absence of other sources, reach out to fellow farmers for information 16 Connected services that will be useful • Crop insurance • Weather information • Marketing/sales of crops • Price information • Information on agricultural policies Potential benefits • Access to real-time alerts on weather and crop prices, farming tips, policies through mobile phones/ village kiosks • Near-home access to commerce platforms to sell produce 12 IITM, ‘Healthcare in rural India’, March 2008 13 IAMAI, IMRB, eTech, ‘Report on Internet in India (I-Cube)’, 2012 14 Top bank targets Indian rural expansion, Emerging Markets Journal, May 2013 15 No-frills, zero-balance accounts rise over two-fold in last 2 years, The Economic Times, June 2012 16 University of Nebraska-Lincoln, “Information needs of rural farmers: A study from Maharashtra, India: A Survey”, January 2012

Creating viable business models for inclusive growth through the National Optical Fiber Network | 8 The need for an ecosystem The NOFN infrastructure has paved the way for relevant e-services, but to operationalize those services, various stakeholders need to come together. There is a clear need for cost-effective devices, vernacular content and lowcost applications relevant to local users, competitive tariffs, etc. The ideal NOFN ecosystem is one that will involve the Central and State Governments, the providers of enabling products and services (both public and private), and local governing bodies to drive and monitor these services at a grass root level. The success of various public development schemes – such as Sarva Shiksha Abhiyan (SSA), the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the National Rural Health Mission (NRHM) – demonstrates the important role of the Gram Panchayats. For the NOFN ecosystem too, Gram Panchayats, need to be closely involved. Figure 2: The NOFN ecosystem and participants Source: KPMG analysis Table 4: The key ecosystem participants and their roles Ecosystem participant Government Public/private businesses Local governing bodies Role • Provide enabling infrastructure • Provide G2C services • Endorse and certify e-offerings, wherever applicable (e.g. e-learning courses) • Provide financial support, wherever necessary • Provide and monitor overall regulatory framework • Offer last mile access • Offer technology platforms and infrastructure • Provide content and applications in local languages • Offer delivery points for e-services • Spread awareness • Push G2C services • Facilitate training and adoption • Collect user feedback • Monitor progress of projects Entities • State Governments • Central Governments • BBNL • Access and technology providers • Hospitals • Banks • Niche content providers (e.g. weather alerts, crop pricing information, etc.) • Private education service providers • Agri- cooperatives/suppliers • Trading and financing companies • Common Service Centers (CSCs) and Village Level Entrepreneurs (VLE) • Gram Panchayats Source: KPMG analysis

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