r 28 days and gives 12 GB of data.
Revenue information suggests that in those villages where there is a substantial use of internet data and a large customer base, the monthly revenue generated by the VLE is in the range of INR 5,000 to INR 6,000 (USD 70 to USD 84). In other villages, the monthly revenue generated is INR 3,000 to INR 4,000 (USD 42 to USD 56) on average.
In the months to follow, it is expected that the number of broadband subscribers will increase, which will directly have an effect on the revenue generated by the VLEs. A steady growth in revenue generation by the VLEs suggests that the model will perform well and also offers lucrative value for the investment made. A nominal pricing plan for data will facilitate greater usage by rural villagers.
Conclusions and the road ahead
In this report, we address the importance of sustainability of broadband connectivity in rural areas of India. We have discussed Gram Marg's 25 village Palghar test bed and how it has attempted to answer various issues regarding rural connectivity through test bed deployments and setting up community networks in 10 villages in Palghar, Maharashtra. We also discuss the 4-P model which has been developed and successfully validated in the field with regard to sustainability. As the 4-P model takes a bottom-up approach, it is a robust and scalable model which generates revenue, enabling the internet to thrive and grow sustainably.
Even though the 4-P model has been successfully validated in the Gram Marg villages, we need to replicate the model in different village contexts, and with different CAPEX contribution scenarios, to understand the model in its entirety. As of now, the model is based on actual expenditure and real field data on usage, revenue generation and recovery of OPEX. In time we shall come up with a projection model taking into account the growth rate of internet subscribers, expected growth in internet demand, and yearly increases in the monthly cost of internet usage. This will enable predictions of revenue accrued by the VLEs and the Gram Panchayat over a period of time.
The district administration also needs to have a voice about their need to be connected and take ownership of the network as soon as connectivity has been enabled. With the Panchayat at the core of the 4-P model, the model becomes very localised, which will eventually help in the betterment of the model.
This sustainable economic model can be the foundation for making rural broadband become financially self-dependent at the village level. As the model focuses on broadband usage, supply and demand, it can effectively formulate the cost effectiveness of technologies used. Unless such a self-sustainable model is implemented, it will be difficult for the internet to penetrate rural areas.
We would like to emphasise the following policy recommendations in support of community networks in India:
- Community networks are allowed to operate in India but there are no specific policies that support such networks. They should be promoted and encouraged by the government.
- Mere internet connectivity should not be the only agenda when connecting rural villages. Seeding the growth of community networks, developing community technologies and encouraging the meaningful use of connectivity should be set as priorities by the government.
- Sustainability of connectivity is a serious issue that needs to be addressed. In most cases, this is thought about only after the network deployment has taken place and the project funds are running dry. However, if the sustainability plan is chalked out and conceptualised during the planning phase of network deployment, all stakeholders in the model can take equal responsibility.
- The village administration (i.e. Gram Panchayat) should be given the authority to address connectivity challenges in their own villages. Government policy measures should help Gram Panchayats to form cooperatives or groups with a legal status to own the network. There can be a provision for such groups to acquire a special ISP licence, making them eligibl