On Thursday, 17 February 2005, Mr Sachin Joshi wrote:

> The questions are certainly justified to be posed, but it is likely that
> the major computer manufacturers would have looked at the market
> feasibility, which demands huge resource investments.

The major computer manufacturers are stuck with inappropriate market
models. They have no idea of any viable approach to computers for poor
people. Computers will be sold to the poor by microbanks, which have a
viable financial model.

> The Simputer in India costs $200 which many Indian families still cannot
> afford. So the poor will certainly not buy them.

You are quite right that the poor will not pay cash for Simputers, and
will not buy them to surf the Web. But that does not mean that Simputers
are beyond their means entirely.

Poor people buy $700 cell phone packages with loans from the Grameen
Bank and others like it, but only after they are trained in banking and
in business, specifically including how to make money renting out the
phone so that they can pay back the loan and have something left over to
live on. Exactly the same process will apply to computers with wireless
connections to the Internet, once there is suitable software and
training for an application known to be a money-maker in the villages.

The ITC e-choupal program has had very good success in placing computers
in villages for farmers to use in looking up international commodity
prices. The company offers to buy crops at the previous day's price on
the Chicago Board of Trade, and does excellent business. The farmers
receive more money, and can invest in improved equipment and supplies,
or pay more for their children's health and education, or otherwise
improve their situations. Investments in health and education have a
spectacular Return on Investment, especially when putting invalids back
to work or when enabling children to get better jobs than their parents
had.

> It has been used in villages as a community device customized for
> specific jobs, such as e-trading for farmers. Such a specialized use
> requires customization by the company that promotes it, and this
> customization necessitates a working partnership with various
> organizations and government agencies, active at the grassroots level.

ITC has not needed government assistance, and we would prefer to avoid
government programs wherever possible. They are almost always
inefficient, and absolutely always a temptation to corruption.

> A mass promotion would work when the Simputer is as trendy and classy as
> handheld devices, if it has to be pitched with the existing PDAs from
> the mobile/computer manufacturers. The market price of all these models
> is the same.

The Simputer is not a PDA, and there are no plans to market it as such.
It was designed for villages without power and phones. There are other
applications for a portable computer, and Simputers are being used in
various other ways.

> Simputer is a good but expensive option to bridge the digital divide.

Expensive compared with what?

-- 
Edward Cherlin
Generalist & activist--Linux, languages, literacy and more
"A knot! Oh, do let me help to undo it!"
--Alice in Wonderland
http://cherlin.blogspot.com



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