PC Kiosk Trends in Rural India Kentaro Toyama 1 Karishma Kiri 1 Deepak Menon 1 Joyojeet Pal 2 Suneet...

PC Kiosk Trends in Rural India

Kentaro Toyama1Karishma Kiri1Deepak Menon1Joyojeet Pal2Suneet Sethi1Janaki Srinivasan3

1Microsoft2University of California Berkeley 3Indian Institute of Information Technology

Policy Options and Models for Bridging Digital DividesTampere, FinlandMarch 14, 2005

What is a rural kiosk?A shop or community center in a rural village equipped with one or more Internet-connected PCs.

What weve looked at so farData sources:Literature in journals, books, web sites, whitepapers In-depth interviews with kiosk agencies (Drishtee, n-Logue)Discussions with third-party observers (academia, govt)Over 30 site visits in India and Africa (Akshaya, Drishtee, ITC e-choupal, MSSRF, n-Logue, )Ethnographic studiesKiosk surveys

The SurveyGoal: to understand rural kiosk operation from a business perspective

Three types of questionnaires for each kiosk:A: Village baseline, one time onlyB: Operator, 1 per kiosk, recurringC: Customers, 5 per kiosk, recurringTranslated to local languagesDelivered orallyN-Logue150 villagesRecurring questionnaires every 3 monthsOver 2 yearsDrishteeTwo sets of 75 villages eachRecurring questionnaires every 6 monthsOver 2 years2 surveys completed, 3rd begun

Sample QuestionsKiosk operatorDemographicsMain source of income?Kiosk operationWhat services offered?CustomersHow many customers do you see per day?MiscellaneousWould you consider opening another kiosk?Kiosk customerDemographicsYour profession?Spending habitsHow much do you spend on food per month?Kiosk usageHow often do you visit?What services do you use?

FindingsPredominant customers are students and unemployed youthCustomer survey capped at 2 students out of 5 per kiosk

FindingsKiosk customers almost always reflect gender of operator

FindingsWord-of-mouth critical for spreading useFirst usage for >60% based on word of mouth, in spite of marketing efforts in village

FindingsKiosk customers not necessarily PC literate70% of customers never touch the PC (operator mediates)

FindingsTop services: computer skills education, entertainment, e-government, desktop publishing

FindingsAverage monthly kiosk revenue not enough to sustainRequired: between Rs. 3500-6000 per month ( 50-85)Current mean and median: Rs. 2000

Chart1

22502250

41251625

29422048

43661600

52002400

38541771

54172833

28751687

10001000

16251375

Monthly Household Income

Kiosk Income

In Rs.

MONTHLY HOUSEHOLD INCOME vs. KIOSK INCOME

Sheet1

Q4Q16

Agri labourUpto Rs 2000Up to Rs. 2000

Agri labour3001 - 40003001 - 4000

Business (specifiy)3001 - 40002001 - 3000

Business (specifiy)3001 - 4000Up to Rs. 2000






Business (specifiy)4001 - 5000Up to Rs. 20002942.3076923077

Educated unemployed youth3001 - 40002001 - 3000

Educated unemployed youthUpto Rs 2000Up to Rs. 2000

Educated unemployed youth4001 - 5000Up to Rs. 200050000175009000800022000

Educated unemployed youthUpto Rs 20002001 - 30002048.0769230769


Farming(own land)2001 - 30002001 - 3000

Farming(own land)2001 - 30002001 - 3000

Farming(own land)2001 - 30002001 - 3000

Farming(own land)2001 - 30002001 - 3000

Farming(own land)2001 - 30002001 - 3000Monthly Household IncomeKiosk Income

Farming(own land)2001 - 30002001 - 3000Agri Labour22502250

Farming(own land)2001 - 30002001 - 3000Business41251625

Farming(own land)2001 - 30002001 - 3000Farming29422048

Farming(own land)2001 - 30002001 - 3000Govt. job43661600

Farming(own land)2001 - 30002001 - 3000Petty trader52002400

Farming(own land)2001 - 30002001 - 3000Pvt.job38541771

Farming(own land)2001 - 30002001 - 3000Retired54172833

Farming(own land)2001 - 30002001 - 3000Shop owner28751687

Farming(own land)2001 - 30002001 - 3000Working student10001000

Farming(own land)2001 - 30002001 - 3000Unskilled Labour16251375

Farming(own land)2001 - 30002001 - 3000

Farming(own land)2001 - 30002001 - 3000

Farming(own land)3001 - 40002001 - 3000

Farming(own land)3001 - 40002001 - 3000

Farming(own land)3001 - 40002001 - 3000

Farming(own land)3001 - 40003001 - 4000


Farming(own land)3001 - 40003001 - 4000

Farming(own land)3001 - 40003001 - 4000

Farming(own land)3001 - 40003001 - 4000

Farming(own land)3001 - 40004001 - 5000

Farming(own land)4001 - 50004001 - 5000

Farming(own land)4001 - 5000More than 8000

Farming(own land)4001 - 5000Up to Rs. 2000






Farming(own land)5001 - 6000Up to Rs. 2000Business41251625




Farming(own land)More than 8000Up to Rs. 2000

Farming(own land)Upto Rs 2000Up to Rs. 2000











Farming(own land)Up to Rs. 20004366.6666666667

Farming(own land)

Government job3001 - 40002001 - 3000

Government job3001 - 40002001 - 3000

Government job3001 - 40003001 - 4000

Government job4001 - 50004001 - 5000

Government job4001 - 5000Up to Rs. 2000







Government jobMore than 8000Up to Rs. 2000



Government jobUpto Rs 2000Up to Rs. 2000

Housewife4001 - 5000Up to Rs. 2000

HousewifeUpto Rs 2000Up to Rs. 2000


Others (specify)4001 - 50003001 - 4000

Others (specify)2001 - 3000Up to Rs. 2000


Others (specify)6001 - 70002001 - 3000

Others (specify)Upto Rs 2000Up to Rs. 2000



Others (specify)More than 8000Up to Rs. 2000

Others (specify)4001 - 50002001 - 3000


Others (specify)3001 - 40004001 - 5000

Others (specify)2001 - 30002001 - 3000


Others (specify)5001 - 60002001 - 3000

Others (specify)Upto Rs 20002001 - 3000

Others (specify)2001 - 30002001 - 3000

Petty Trader5001 - 6000Up to Rs. 2000

Petty Trader3001 - 40002001 - 3000

Petty Trader3001 - 40002001 - 3000

Petty TraderMore than 80002001 - 3000

Petty Trader5001 - 60003001 - 4000

Private job2001 - 30002001 - 3000

Private job2001 - 30002001 - 3000

Private job3001 - 40002001 - 3000

Private job4001 - 50002001 - 3000

Private job4001 - 50002001 - 3000

Private job4001 - 50002001 - 3000

Private job5001 - 60002001 - 3000

Private job3001 - 40003001 - 4000

Private job4001 - 50003001 - 4000

Private job5001 - 60003001 - 4000

Private job6001 - 70003001 - 4000150002100022500110001300010000

Private job2001 - 3000Up to Rs. 2000

Private job2001 - 3000Up to Rs. 20003854.1666666667








Private jobUpto Rs 2000Up to Rs. 2000


Private job2001 - 3000

Private jobMore than 8000

Retired2001 - 3000Up to Rs. 2000

Retired6001 - 70005001 - 6000

Retired5001 - 60002001 - 3000

Retired5001 - 60004001 - 5000

RetiredMore than 8000Up to Rs. 2000

Retired4001 - 50002001 - 3000

Shop Owner2001 - 30002001 - 3000

Shop Owner2001 - 3000Up to Rs. 2000




Shop Owner6001 - 70003001 - 4000

Shop Owner4001 - 50002001 - 3000


Student(Working)Upto Rs 2000Up to Rs. 2000

Unskilled labour (daily wage workers)3001 - 4000Up to Rs. 2000

Unskilled labour (daily wage workers)Upto Rs 2000Up to Rs. 2000


Unskilled labour (daily wage workers)Upto Rs 20002001 - 3000

5001 - 60002001 - 3000

54172833

7500350055006500

28751687

16251375

Sheet1


Kiosk Income

In Rs.


Sheet2

Sheet3

Villages that can sustain a connected PCIncomeLiteracy & educationKnowledge-based needsInfrastructureEconomies of scale(population)Villages that cannot sustain a connected PC

Villages that can sustain a connected PCIncomeLiteracy & educationKnowledge-based needsInfrastructureVillages that cannot sustain a connected PCFocus on SustainabilityEconomies of scale(population)

Villages that can sustain a connected PCVillages that cannot sustain a connected PCIncomeLiteracy & educationKnowledge-based needsInfrastructureFocus on DevelopmentEconomies of scale(population)

Bridging the Digital Divide?Other possible models for IT in development:

Non-PC computing platformsPCs for village administrationGovernment-subsidized kiosksRural business process outsourcing (BPO)Computers in schoolsIT for existing non-IT development projectsEtc.

Thank you!

Backup Slides

Common Applications

Applications:E-agricultureE-governmentComputer trainingTelemedicineVoIP, chat, e-mailEtc.

Successful PC kiosks may not be about the PC.Some non-IT functions:Cooking classesPublic announcement systemPhone serviceEtc.

The kiosk operator can make or break the kiosk.Operators need business skills, computer skills, entrepreneurial abilityCareful selection of kiosk operator importantTraining and follow-up critical

Spending habits All segments spend equal on various basic necessities Monthly spent on kiosk by most of the segments is between Rs. 14 - 20 ($.30 - .45) which is .37% of the total monthly HH incomeQ. Please specify the approximate amount spend by you on each of the following?

Sample size: 275

Chart1

4.911.75.85.154.54.75

13.3515.4514.4515.729.624.2

1.152.752.11.53.26.65

6.586.655.658.7510.3

0.23.756.652.53.22.2

4.25.36.13.758.75.55

0.34.650.450.61.10.65

Farmer

Student

Shop Owner

Private Job

Govt. Job

Educated unemployed youth

In $

CUSTOMERWISE MONTHLY EXPENDITURE BREAK UP

Sheet1

StudentShop OwnerPrivate JobGovt. JobEducated unemployed youthFarmer

Education11.75.85.154.54.754.9

Food15.4514.4515.729.624.213.35

Communication2.752.11.53.26.651.15

Clothing86.655.658.7510.36.5

Entertainment3.756.652.53.22.20.2

Health5.36.13.758.75.554.2

Kiosk4.650.450.61.10.650.3

Farming16.6

Sheet1

4.911.75.85.154.54.75

13.3515.4514.4515.729.624.2

1.152.752.11.53.26.65

6.586.655.658.7510.3

0.23.756.652.53.22.2

4.25.36.13.758.75.55

0.34.650.450.61.10.65

Farmer

Student

Shop Owner

Private Job

Govt. Job

Educated unemployed youth

Sheet2

Sheet3

Kiosk revenue vs. other revenueThe major source of income for most kiosk owners is not the kioskQ. From the various income groups mentioned below, please select the one in which your monthly household income falls?Q. How much do you earn on an average every month from your kiosk Sample size: 150

Chart1

22502250

41251625

29422048

43661600

52002400

38541771

54172833

28751687

10001000

16251375


Kiosk Income

In Rs.


Sheet1

Q4Q16

Agri labourUpto Rs 2000Up to Rs. 2000

Agri labour3001 - 40003001 - 4000








Business (specifiy)4001 - 5000Up to Rs. 20002942.3076923077

Educated unemployed youth3001 - 40002001 - 3000


Educated unemployed youth4001 - 5000Up to Rs. 200050000175009000800022000

Educated unemployed youthUpto Rs 20002001 - 30002048.0769230769


Farming(own land)2001 - 30002001 - 3000

Farming(own land)2001 - 30002001 - 3000

Farming(own land)2001 - 30002001 - 3000

Farming(own land)2001 - 30002001 - 3000

Farming(own land)2001 - 30002001 - 3000Monthly Household IncomeKiosk Income


Farming(own land)2001 - 30002001 - 3000Business41251625

Farming(own land)2001 - 30002001 - 3000Farming29422048

Farming(own land)2001 - 30002001 - 3000Govt. job43661600

Farming(own land)2001 - 30002001 - 3000Petty trader52002400

Farming(own land)2001 - 30002001 - 3000Pvt.job38541771

Farming(own land)2001 - 30002001 - 3000Retired54172833

Farming(own land)2001 - 30002001 - 3000Shop owner28751687

Farming(own land)2001 - 30002001 - 3000Working student10001000

Farming(own land)2001 - 30002001 - 3000Unskilled Labour16251375

Farming(own land)2001 - 30002001 - 3000

Farming(own land)2001 - 30002001 - 3000

Farming(own land)3001 - 40002001 - 3000

Farming(own land)3001 - 40002001 - 3000

Farming(own land)3001 - 40002001 - 3000

Farming(own land)3001 - 40003001 - 4000


Farming(own land)3001 - 40003001 - 4000

Farming(own land)3001 - 40003001 - 4000

Farming(own land)3001 - 40003001 - 4000

Farming(own land)3001 - 40004001 - 5000

Farming(own land)4001 - 50004001 - 5000

Farming(own land)4001 - 5000More than 8000







Farming(own land)5001 - 6000Up to Rs. 2000Business41251625




Farming(own land)More than 8000Up to Rs. 2000












Farming(own land)Up to Rs. 20004366.6666666667

Farming(own land)

Government job3001 - 40002001 - 3000

Government job3001 - 40002001 - 3000

Government job3001 - 40003001 - 4000

Government job4001 - 50004001 - 5000











Government jobUpto Rs 2000Up to Rs. 2000


HousewifeUpto Rs 2000Up to Rs. 2000


Others (specify)4001 - 50003001 - 4000



Others (specify)6001 - 70002001 - 3000




Others (specify)More than 8000Up to Rs. 2000

Others (specify)4001 - 50002001 - 3000


Others (specify)3001 - 40004001 - 5000

Others (specify)2001 - 30002001 - 3000


Others (specify)5001 - 60002001 - 3000

Others (specify)Upto Rs 20002001 - 3000

Others (specify)2001 - 30002001 - 3000

Petty Trader5001 - 6000Up to Rs. 2000

Petty Trader3001 - 40002001 - 3000

Petty Trader3001 - 40002001 - 3000

Petty TraderMore than 80002001 - 3000

Petty Trader5001 - 60003001 - 4000

Private job2001 - 30002001 - 3000

Private job2001 - 30002001 - 3000

Private job3001 - 40002001 - 3000

Private job4001 - 50002001 - 3000

Private job4001 - 50002001 - 3000

Private job4001 - 50002001 - 3000

Private job5001 - 60002001 - 3000

Private job3001 - 40003001 - 4000

Private job4001 - 50003001 - 4000

Private job5001 - 60003001 - 4000

Private job6001 - 70003001 - 4000150002100022500110001300010000












Private job2001 - 3000

Private jobMore than 8000

Retired2001 - 3000Up to Rs. 2000

Retired6001 - 70005001 - 6000

Retired5001 - 60002001 - 3000

Retired5001 - 60004001 - 5000

RetiredMore than 8000Up to Rs. 2000

Retired4001 - 50002001 - 3000

Shop Owner2001 - 30002001 - 3000





Shop Owner6001 - 70003001 - 4000

Shop Owner4001 - 50002001 - 3000


Student(Working)Upto Rs 2000Up to Rs. 2000

Unskilled labour (daily wage workers)3001 - 4000Up to Rs. 2000



Unskilled labour (daily wage workers)Upto Rs 20002001 - 3000

5001 - 60002001 - 3000

54172833

7500350055006500

28751687

16251375

Sheet1


Kiosk Income

In Rs.


Sheet2

Sheet3

Millions of PCsForresters projections for installed base of PCs worldwideEmerging markets to be responsible for 70% of growth in PC sales by 2010

Chart1

500.3

520.3

560.9

616.9

692.3

790.9

915.4

1066.5

Sheet1

200374.7500.3

200494.7520.3

2005135.3560.9

2006191.3616.9

2007266.7692.3

2008365.3790.9

2009489.8915.4

2010640.91066.5

Sheet1

Sheet2

Sheet3

A5: Scaling to 600,000 villages (for India alone)Q: What are the challenges with rural kiosks?

Source: United Nations, 2003A: Yes, of course.

Rupees per month

Rupees per monthdata from Vivek Dhawans Masters thesis (IIT-B)Needed to break even: $70-140/mo.

A: $150? Q: What is the cheapest a PC could be, anyway? Disk: $40Power supply: $10Memory: $10 for 100MBProcessor: $20Other silicon: $20CRT display: $50Keyboard/mouse: $10courtesy of Chuck Thacker (who says closer to $250)

IIT-Madras/Midas Metel low-cost phone and e-mail device

HP Labss Script Mail for pen-based e-mail

LeapFrog LeapPad for healthcare education in Afghanistan

Government-sponsored lunches at a school in Tamil NaduA well-water hand-pump in Madhya Pradesh

Dots indicate villages, spread across one of these dimensions: income, education, degree of knowledge-based needs, infrastructure, population.

On this spread, some villages (above the squiggle) can already easily accommodate a connected PC, and there are clever entrepreneurs who have already established internet kiosks there.

But, most cannot. Many rural kiosk projects focus on sustainability. As long as we focus on sustainability, its about moving the squiggle down. This is not a bad thing.

However, there is a problem in that sustainability is difficult to achieve, so if a given kiosk fails, as far as it is concerned, the line pops back up, and any effort sunk into the kiosk is lost.If we focus, instead, on developing the villages themselves (with computing technology merely as an aid), then the villages cross the line by themselves.

Any gains made in development (such as education for people in the villages), stays, even if the particular IT project fails. No effort is wasted.-- Even in villages where food source is uncertain, health is poor, employment opportunities are scarce, there is a place for information technology. -- okra crop story; blindness diagnosis-- some kiosk operators start cooking classes-- some act as centers for PA system; this is what saved a village near Pondicherry from Tsunami (it was a PC kiosk, but the PC did not figure in story)-- some kiosks generate most revenue from providing phone service-- some kiosks sell petty goods such as bangles, stationery, etc.-- some kiosks used as a hub for the community, even if PC isnt used (e.g., ITC e-choupal in Kodia)

-- Can IT contribute to side businesses? Can side businesses draw in potential PC users?

-- investing in careful operator selection and training is critical-- a strong kiosk operator can keep the business alive through various means, using offline means, if necessary-- female operators often very good; they have a lot of incentive to make venture succeed-- this part is the hardest to scale

-- # of PCs worldwide will more than double in next 5-6 years.-- 70% will come from emerging market countries-- 80million PCs

No major kiosk agency has ever met its initial targets, in terms of # of villages reached.

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