Are fixed phones a viable solution for development anymore?

Ashoka-Lemelson Fellow Madan Mohan Rao, founder of Rural Telecom Foundation, has modified an almost-extinct technology to serve the specific communication needs of rural India. The RTF is using a modified party line system on the wire line service of the BSNL (government owned telecom company), to provide connectivity to villagers as a group rather than as individual subscribers. RTF uses a low-cost, modular, easily expandable configuration to split a single-wired line into multiple lines. The key behind the design’s affordability is that it is compatible with the Center for Development of Telematics (CDOT) exchange, thus eliminating the need for installing expensive hardware. The implementation makes use of simple electronic devices that are readily available from Indian telecom equipment manufacturers. In addition, the system does not require any additional power supplies and all devices are powered from the 48-volt supply coming from the CDOT exchange wired loop. Also, the system does not use complicated frequency-matched ringing systems, making it even more affordable. In the RTF model, up to 15 people share a line, with one of them designated as the leader. The leader keeps track of the billing for each member.

While cell phone use is prevalent across urban India, most commercial providers find little incentive to serve many of the isolated, rural communities across the rest of India.  Thus, Madan sees the Gram-phone not simply as a way to connect isolated villages but also as a way to grow demand and create an incentive for cell phone providers to eventually serve these rural communities.  In these villages connectivity can have substantial economic impact as families are able to better gauge markets and the availability of goods and services in neighboring villages and towns before forfeiting days of work to go in search of them.  Rural telephones also generate money for the rural and national economy and make it easy for rural villagers to start and own small businesses.  The communication between previously isolated villages also connects families, especially married daughters in new ways, subtly shifting the relationships among families and villages. In addition, not only does the Gram-phone save rural people money and connect communities but it helps to meet policy objectives, and serves as a simple and practical tool for millions of people to fully participate in the day-to-day affairs of their neighborhood, region and country.

Madan’s Rural Telecomm Foundation initial model is innovative and unique in its ability to serve reliably and improve dramatically with access to better technology. RTF’s Gram-phones are affordable even to the poorest of the poor. Unlike conventional telecom services, RFS does not require any upfront installation costs and compared to the government owned BSNL fees, the monthly rental cost for utilizing Gram-phone of only Rs. 30 is very low. Through his initiative Madan is creating a demand for telecom connectivity in rural areas by providing basic systems and gradually moving on to more sophisticated and more reliable systems. Madan plan is to combine the earliest telecom systems – party line – with the newest technologies – wireless CDMA. His aim is to create an equal playing field for the rural poor by enabling them to access markets beyond their immediate localities. Madan has worked with government telecom utilities and commercial telecom providers like Qualcomm to convince them to adopt this model.

Photo source: Rural Telecom Foundation site.