Internet In South Asian Development
- a weapon to fight poverty.
Heritage & Travel
the-south-asian.com February 2001
The Role of Internet in South Asian
Development by Salman Saeed What the Gurus say about Networks, Information Data Bases, E-Commerce; B2B, B2C, etc Vinod Khosla – Partner, Kleiner Perkins & Caufield Byers,
U.S.A. Khosla, who studied at IIT, Delhi and Stanford University and made his
mark in the Silicon valley as a co-founder of Sun MicroSystems in the 1980’s,
has the following recommendations for Jump Starting countries like India,
which have a lot of Human Capital into the new Networked Global Economy. §
The Role of Internet in South Asian Development
What the Gurus say
Networks, Information Data Bases, E-Commerce; B2B, B2C, etc
Vinod Khosla – Partner, Kleiner Perkins & Caufield Byers, U.S.A.
Khosla, who studied at IIT, Delhi and Stanford University and made his mark in the Silicon valley as a co-founder of Sun MicroSystems in the 1980’s, has the following recommendations for Jump Starting countries like India, which have a lot of Human Capital into the new Networked Global Economy.
§Create New Telecoms Infrastructure based on pragmatic cost-effective, radical approach.
§5 % of the right ["elite"] people empowered with the right tools will pull along the rest 95 % - just as it was done in the USA via the Silicon valley model.
§This 5 % will NOT be the most Privileged, best Connected but the BEST USERS of this new technology.
§Instead of connecting 50,000 Indian villages – make 5000 circles each a radius of 40 km.-this means each circle is 100 villages and has about 25,000 families or 100,000 people.
§Using the railroad infrastructure, build 5000 communication centers and not 500,000 village centers.
§Link these 5000 centers – this is economically viable.
§This model allows decentralized working circles; on average people would travel a bicycle commute away [10 km- to – 20km. – to 40 km maximum]. No congestion pressure on cities.
§This model results in 500 small greater suburban areas rather than 5 /10 cities of 15 to 30 million citizens.
§Cost of each center is $ 1 million and the total is $ 1 billion.
§Raising this $ 1 billion financing means raising a 12 % tax for an annual communications market of $ 8 billion a year.
§Total time taken to transform India is 10 years.
§Let Railways, Gas, Power, Irrigation Industries SHARE GENERIC COMMUNICATION NETWORKS/ CONDUITS. SHARE Communication towers – this is the static part.
§The Dynamic part is the technology that will go into the infrastructure
§Build no more PSTN networks [ordinary telephone infrastructure].
§Instead build Voice – over IP networks.
§Study the Model of Grameen Bank of Bangladesh and its Telecom project.
§Replicate Grameen Bank Model in India.
Gururaj Deshpande – CEO Sycamore Networks, U.S.A.
Deshpande is the founder of Cascade systems, which was sold to Ascend, which was bought by Lucent for about $ 40 billion. Deshpande has recently started Sycamore Networks in the area of Optical Intelligent switching.
Deshpande has the following suggestions.
Hyper Capitalism or the new variety variously referred to as the Networked Economy, Knowledge Economy, Information Economy is transforming the United States economy. The basic core of this economy is the ability to connect customers faster.
Because of the advances in Network technology namely – Optical Switching, the speed of Transactions will further increase. The net result of all this will be the increasing trend towards economic Survival of the Fittest. Whichever country and Company can produce and offer goods at the best price will survive – the rest will be condemned to a digital divide and fall - much as the cities of the old Silk routes went into obscurity and never recovered their prosperity built on taxing the trade goods on the old routes.
Large Banks have known the value of Data Networks and the benefits from this increase in the velocity of money/capital by building networks thereby tapping into various high growth areas such as the Middle East Oil countries.
The rule will soon become ‘Network your Information/Data using Optical Technologies or die economically’. This will be the new battle cry.
The implications of the new rules of this economic game are:
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