8. Telecenter Enterprises and Grassroots Innovation

Often quoted, this example is well analyzed in Prahalad (2005), pp. 319–357.

For example, in the past, telecenters in rural areas relied either on fixed-line or on VSAT technology, which implied significant connectivity costs for these telecenters. Emergence of Wireless Fidelity (Wi-Fi) provided a potentially powerful tool to narrow the digital divide and bolster economic development in rural areas. Wi-Fi provides broadband Internet access to specially outfitted PCs within certain distance from the transmitter. Wi-Fi presents many advantages that make it a suitable solution to support connectivity. Wi-Fi is comparatively cheap (less than US$250 for a small installation), fast and reliable, easy to install and has low maintenance requirements. With the use of Wi-Fi, it is possible to share the VAST link among several telecenters in a region, thereby achieving economies of scale and reducing cost per telecenter. It operates on unlicensed airwave spectrum, so there are no extra monthly costs on top of the charge for a broadband connection that is shared among the users.

Adapted from Fillip and Foote (2007).

Adapted from interview with Telecenter Magazine, Vol. II, Issue 1, March 2008.

See Hanna (2007a).

For an excellent treatment of this topic, see International Finance Corporation and World Resource Institute (2007).

These guiding principles are adapted from Prahalad (2005).

See Eric Von Hippel (2005).

See Hanna (2007a).