Comments on: What do we know about Sri Lanka’s Telecentres?

By: Global Voices Online » The future of ICT4D: How soon is now?

Global Voices Online » The future of ICT4D: How soon is now? — Tue, 03 Nov 2009 14:37:09 +0000

[...] rural Nansalas, a chain of government-developed telecentres. These telecentres in Sri Lanka fulfill many roles: Some provide connection to the web, but also offer fax, photocopying and printing services. They [...]

By: Chanuka Wattegama

Chanuka Wattegama — Sun, 23 Nov 2008 18:02:39 +0000

@Insider,

Thanks for the info. I knew about the plan, but did not know it was actually happening. Glad to learn that. This might have reflected in our survey results if not for the fact that majority of the operators were from telecenters no more than 2 years old.

It is also news for me that temple model is more regular in their payments. Probably because their costs are limited. Also the line between the two seems to be thin now.

Finally, this information would certainly of more value if you didn’t hide behind an avatar. Can’t cite anyone who just introduces himself/herself as an ‘insider’.

By: Insider

Insider — Sun, 23 Nov 2008 17:37:01 +0000

Chanuka says “Internet charges for Nenasalas are borne by ICT Agency from the money comes from e-Sri Lanka program”.
This is only true for the first two years as some folks from even Lirne-Asia may testify. In year 3 the Nenasala operator pays 1/3 rd of the costs and in year 4 they pat 2/3rds as it was designed as a declining subsidy.
As ICTA has bought the connectivity directly from the service provider the mechanism for the declining subsidy is for the Nenasala operators to pay back to the ICTA 1/3rd of the costs in year 3, and 2/3rds of the costs in year 4. Any guesses as to who is prompt with their payments and who is falling behind?
Bulk of the Nenasalas in Religious institutions and prompt payers, while bulk of the Nenasalas run by entrepreneurs are falling behind. Interesting observation, not necessarily captured in a survey such as the above.

By: Chanuka Wattegama

Chanuka Wattegama — Fri, 21 Nov 2008 07:47:08 +0000

The relatively large standard deviation ($ 86) means the profit (loss) of a telecenter varies within a large range. Even few successful ones can boost the average. So this is not against your observation.

However, if they were to pay for electricity, staff salaries etc on their own a telecenter that does not make an income will not last long. So their mere survival (for few years at least) is proof that they at least break even. (Of course, not considering the cost of the link)

Many small scale business people do not maintain accounts. But that does not necessarily mean they run at a loss.

By: Harsha Liyanage

Harsha Liyanage — Fri, 21 Nov 2008 06:58:26 +0000

I am quite surprised to see this profitability (61$ avg profit). As per our records (Fusion) most of these telecentres do not have a proper understanding about their actual expenses. (Not many maintain accounts).

The rest (eg preferance to educational services) is almost inline with our general finds based on earlier surveys.

Anyway, this is a helpful update, Chanuka, thank you for sharing this.