INFOWORLD.COM -- HONG KONG STARTUP PLANS FREE PC PROGRAM IN INIDA
15 November, 2005
John Ribeiro
Last month, the Hong Kong-based company announced plans to ship 200,000 free PCs to Brazil over the coming months. The computers are designed to provide Internet access to lower income individuals and small businesses in the country.
Under the business model proposed by Asiatotal.net, the free computers will be paid for by sponsors who will own hot keys on the computers. The hot keys take users directly to the sponsors' Web sites, from where they are able to make payments for goods and services using a smart-card reader, Judy Chen, president and chief executive officer of Asiatotal.net, told reporters in Bangalore on Friday.
The free computers will not be offered to the very poor, but only to the middle and lower middle-class people who have sufficient purchasing power, Chen said. Only then will the program be attractive for vendors of goods and services to purchase rights to the hot keys, she added.
"This is, in a sense, a marketing tool for companies, but a side effect of this program is that it will help bridge the digital divide in emerging economies," Chen said.
In Brazil, the minimum income required to qualify under the program is US$1,500 per year, Chen said.
How soon Asiatotal.net will come to India and other targeted countries such as China and Russia is unclear. "The roll-out will depend on how fast we get sponsors, and as yet we only have sponsors in Brazil," Chen said. In India, the company has yet to assess the market and negotiate with marketing companies to sponsor the program, she added.
The first free computers from Asiatotal.net are also likely to be rolled out first in the cities and towns that already have Internet access. The company does not provide the Internet access free, but only the device, and a minimum requirement is that the user have a telephone connection and an Internet account, according to Chen. In China, for example, the company is considering rolling out the program initially in Beijing and Shanghai, and later in rural areas if Internet Service Providers (ISPs) are in a position to provide service in these locations, she said. ISPs may find some benefit in offering their service free as well, she said.
Asiatotal.net aims to attract partners in several sectors, including retail, financial services, telecommunications and entertainment, according to Chen. "The faster we are able to bring corporate partners onboard, the more computers we will be able to provide to the millions of people in emerging markets who want to improve their lives and the lives of their children," she said.
The computer, called the iT, consists of a 7-inch LCD (liquid crystal display) monitor, keyboard, mouse, and speakers. It runs Microsoft Corp.'s Windows CE operating system, and can connect to a USB (universal serial bus) peripherals, including a USB card reader that is provided as part of the free iT package. The user interface will be modified for local languages, Chen said.
The hardware for the iT has been designed by Biostar Microtech International Corp., a motherboard maker in Taipei. Biostar is also manufacturing the product.
A number of technology companies, including Hewlett-Packard Co. and Intel Corp., are developing products and services that can help bridge the digital divide in emerging economies such as India. Intel announced earlier this year that its Community PC, a computer specially designed for rural applications, will be shipping in India by the end of this year.
Wyse Technology Inc., a vendor of thin client computing in San Jose, California, announced in June its participation in a consortium that is piloting in India a platform for the delivery of services to rural areas around its thin client technology. However, unlike Asiatotal.net, Wyse and some other local players have invested upfront in setting up Internet centers in rural areas, expecting revenue to eventually kick in from Internet-based services offered to India's rural population.
Asiatotal.net will charge sponsorship fees and have revenue-sharing agreements with the sponsors. Four keys will be generic ones as they will provide access to information on health issues, farming, and other related content, which will be tailored for area-specific distribution. But is this a feasible model?Asiatotal.net has declined to specify the cost of manufacturing of this device, saying that it is not relevant as it will be distributed free of cost.
The company feels this concept will offer sponsors huge revenue potential and prompt them to initially pay up.
“Sponsors benefit from a huge new market, not to mention the fact that the sole ownership of a hot key will ensure a level of brand loyalty that you can only dream of. Social responsibility and the impact of being involved with the project also cannot be underestimated,” says Judy S Chen, president & CEO, Asiatotal.net.
The firm says it intends to distribute 3 million iTs across developing countries like India, China, Brazil, Mexico, and those in eastern Europe. It will be shortly rolling out these devices in Brazil.
“It is estimated that only 10 per cent of world's population are connected to the Internet and 70 per cent of the world's Internet users live in the 24 richest counIttries which account for 16 per cent of the world's population. iT is the result of a vision to close this great digital divide by providing the means for the less privileged to access the Internet,” Chen says.
