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Please click here to download - CII

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Executive Summary Over

Executive Summary Over the last few decades, the Government of India has undertaken a wide range of reforms to drive inclusive growth. One of the major challenges facing the Government is ensuring that the implementation of these reforms reach the bottom of the pyramid. ICT, particularly wide access to high speed broadband connectivity, has been recognized as one of the most important means to overcome this challenge. The Government’s INR 21,000 crore investment in the National Optical Fiber Network (NOFN) – funded from the Universal Service Obligation Fund (USOF) – has set the stage for extending broadband access to the country’s 6 lakh plus villages. As the fiber infrastructure gets ready, it is important to ensure that there is a steady supply of relevant content and applications in key growth sectors such as education, healthcare, banking and agriculture. To this effect, the need of the hour is to create scalable, commercially feasible business models underpinning a Public-Private-Panchayat ecosystem. This report identifies the following services that can be offered to the rural population for meaningful social, financial, and economic inclusion. Table1: e-Services considered in this report Education • Remote classrooms in rural government schools • Online vocational training courses delivered through rural ICT centers such as the Common Service Centers Healthcare • Telemedicine centers for remote consultation and diagnostics, set up by private healthcare service providers or by rural entrepreneurs in collaboration with private healthcare service providers Banking • Basic banking services to the unbanked population using, among others, the Post Office network • Doorstep banking services from various commercial banks through the Business Correspondent network maintained by a third-party private provider Agriculture • Internet kiosks for providing agriculture-related information to farmers • Integrated application platform that pushes agricultural information over SMS and can also be accessed at kiosks Drawing from the experience of the multiple pilots that are being conducted in the country, and the various e-services that are already being offered as part of companies’ Corporate Social Responsibility, the report suggests some business models that: • Enable delivery at affordable cost to the end-user • Are scalable • Generate adequate commercial and social returns While many of these models could be self-sustaining, a few would require some money to be infused in the hands of the consumer to generate demand. The report proposes the possibility of channeling funds from existing Government programs such as Sarva Shiksha Abhiyan and the new National Health Mission (a new program created in FY14 combining the National Rural Health Mission and the National Urban Health Mission) 1 to create this corpus. Given that broadbandenabled services aim to achieve the same outcome as these programs do, such reallocation of funds would help the Government speed up its inclusion agenda, while building skills and generating employment in rural areas. The report concludes with a recommendation to set up a CII-Government Working Group comprising all relevant stakeholders from the Government and the industry. This Group will act as the core body for coordinating multi-stakeholder discussions and stimulating a collaborated approach towards delivering affordable e-services to rural India over the NOFN. 1 The Hindu, March 2013

Contents 01 The Current State of Internet Usage in India 04 The National Fiber Optic Network (NOFN) 06 Emerging Opportunity Areas and Ecosystems 10 Business Models Education 11 Healthcare 18 Banking 24 Agriculture 31 37 A Way Forward 41 About KPMG in India 42 About CII

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