How far onshore rural BPOs cater to the needs of their clients? It might not exactly be toy manufacturing outsourced to rural China, but close. The connectivity issues still exist, and capacity building too remains a challenge. The good news is in spite of all that things do happen.

Isura Seneviratne, 22, runs OnTime Technologies at Mahavilachchiya – the first rural BPO in Sri Lanka, born as a joint effort of Horizon Lanka Academy and FARO (Foundation for Advancing Rural Opportunities). Isuru and its first manager Nirosh did the business plan. Trained in Laos and India for BPO work, Isuru knows the nuts and bolts of the game. The operation is still lean, only 8 seats against 25 – the expect target within the first year of operation. Cannot blame because the business had to face the hard challenge of not only building capacity but also pulling legs by different parties. Fortunately the internal politics is now over with the bold step by Lovina Charles, a key donor of the Horizon project at Mahavilachchiya expressing her full backing for the BPO.

At OnTime technologies an operator earns Rs. 8,000 (USD 72) minimum per month, while the highflyers take something like Rs. 13,000 (USD 120) home. Assuming a reasonable PPP ratio this is equivalent to earning USD 240 – 300 in Colombo.

OnTime Technologies offer data entry, data verification, data Indexing, scanning, web designing and graphic designing services. Isuru is proud to mention his clients, John Keells Holdings and Dialog Telekom, two conglomerates. His next goal is a project too ambitious. From Mahavilachchiya Isuru and his team is going to handle the daily issues for a hotel network.

Isuru is not alone in the game.

Jayantha Wickramaratne of Panamura Nenasala, Embilipitita (a telecenter setup under the World Bank funded e-Sri Lanka program) provides e-commerce services using the e-Bay model through the site http://www.ecseva.lk. Advertisements placed by service providers are made available to the large base of site’s users. Anyone who has a job too can place an advertisement which will be then offered to a bidder through a competitive bidding process.

Selvaratnam Sri Kanthan of Koslanda Nenasala too runs a rural BPO service for local and international clients. Partnered with NLingua Services of New Delhi, a voice transcription and translation service, his Nanasala employs Koslanda residents to translate and transcribe audio files from Tamil or Sinhala into English, or vice versa. Web Design is another service he offers.

This does not mean everything runs perfectly. There are so many issues to be addressed. (For example Isuru can do a better job with a link of higher capacity than his present 256 kbps one) Still these courageous and innovative young men and women bring us hope – in difficult times.

This is what ITU’s Telecommunication/ICT Indicators Report for the Asia-Pacific region 2008 says. It was released at ITU TELECOM ASIA 2008, Bangkok, Thailand yesterday (Sept 2, 2008).

The Report finds evidence that ICTs and broadband uptake foster growth and development, but the question remains as to the optimal speed that should be targeted in view of limited resources.

The area in which the region really stands out is the uptake of advanced Internet technologies, especially broadband Internet access. The Asia-Pacific region is the world’s largest broadband market with a 39 per cent share of the world’s total at the end of 2007. In terms of broadband access, Asia-Pacific has made remarkable progress in the past few years, with subscriber numbers growing almost five-fold in five years: from 27 million at the beginning of 2003 to 133 million at the start of 2008.

In the region’s high-income economies, ubiquitous access is progressing through a competitive race to provide ever faster fixed broadband access. Operators in Hong Kong (China) and Japan have launched one-Gigabits per second (Gbps) broadband and triple-play services aimed at the residential market, featuring applications such as Internet telephony and television. The Republic of Korea leads the world in terms of the percentage of households with fixed broadband access, and no less than five economies in the top ten are from Asia-Pacific. The Republic of Korea, Hong Kong (China), and Japan also lead the world in terms of the proportion of households with fibre optic connections, essential for supporting the next generation of ultra-high speed Internet applications.

These high-income economies are also leaders in terms of third generation (3G) mobile cellular deployment. Fixed and mobile broadband technologies complement each other and users enjoy continuous high-speed Internet access. In Singapore, a ubiquitous Internet access plan combining unlimited 8 Megabits per second (Mbps) fixed broadband, 2 Mbps mobile broadband and access at some 800 Wi-Fi hotspots is available for just USD 35 per month.

At the other extreme, in most of the region’s low and lower-middle income economies, high-speed Internet access is limited to urban areas at best, typically expensive, and often not available at all. The regional broadband divide is striking, with poor economies having a close-to-zero broadband penetration, compared to that of rich economies where one in four persons is a broadband subscriber (Figure 1).

Figure 1: Fixed broadband Internet subscribers per 100 inhabitants, 2007

The gap in available broadband speeds between rich and poor countries is as wide as broadband penetration. In Japan, the Republic of Korea and Hong Kong (China), the minimum advertised broadband speed is faster than the maximum broadband speed in Cambodia, Tonga, Laos and Bangladesh.

While in low and lower-middle income economies mobile phones have become a substitute for the shortage of fixed lines, they are not yet fulfilling the potential of broadband access. By the end of 2007, only Indonesia, the Maldives, the Philippines and Sri Lanka had commercially deployed WCDMA networks. The region’s two largest mobile markets, China and India, have yet to launch mobile broadband. By the end of 2007, there were over 120 million mobile broadband subscribers in the region (Figure 2), but almost all (97 per cent) were in high income economies.

Figure 2: Mobile cellular broadband subscribers in Asia-Pacific

While the region’s high-income economies are pushing the frontier of broadband bandwidth to a point where applications have yet to catch up, many Asia-Pacific developing economies are bandwidth starved, inhibiting the development of their information societies.

The ITU Report argues that broadband uptake enables a range of socially desirable and valuable online services in areas such as government, education and health. The use of broadband technologies can help overcome many of the basic development challenges faced by poor countries. The Report provides a number of examples where broadband connectivity has acted as a catalyst for development. These include the provision of education through distance learning in the Solomon Islands, the creation of jobs through business incubators for women in China, and the supply of communication services for disaster management in Myanmar.

Read the press release here. Full report is not yet available in the public domain.

(Please click on the images for a better view)

Asia’s emerging markets, comprising eight nations, are expected to see mobile subscriber net gains of 573 million by end-2012, breaching the one billion mark to close the year at an estimated 1.06 billion subscribers, a report from research firm Frost & Sullivan said.

In 2007, these emerging markets were home to some 487 million mobile users, accounting for 37.1% of Asia-Pacific’s total mobile subscriber base, the report said.

The report also said the mobile services sector in eight emerging Asia-Pac countries (excluding China) earned revenues of $33.27 billion in 2007. This is predicted to reach $61.35 billion by end-2013, at a CAGR of 10.7% (2007-2013).

Countries included in this study are Bangladesh, Cambodia, India, Indonesia, Laos, Pakistan, Sri Lanka and Vietnam; all with mobile penetration rates of under 50%.

According to Frost & Sullivan industry analyst Jeff Teh, over half of the world’s mobile networks are believed to exist in emerging markets.

“Most mature markets in Europe, the Americas and even Asia are fast reaching saturation, adding fewer connections and offering fewer growth opportunities. As mobile operators in Asia scramble to add another staggering one billion subscribers onto their networks, Asia’s emerging nations offer the most palpable growth prospects, particularly in the rural sectors,” Teh said.

He adds that such opportunities are however not without a gamble “the inherent characteristics across these emerging markets are that they are generally lower-income hence low ARPU segments, with blended ARPU as low as $3.90 per month in some countries, and subscribers are largely inclined towards prepaid services.

The Economist is not correct saying ‘No Evidence’ of Internet blocking in Sri Lanka, and in Laos and Cambodia the Internet usage is low so blocking does not make any difference.

As shown, even in Asia the attitude of officialdom varies when it comes to filtering content of a social nature. In many places agreements are set with service providers to block nasty stuff such as child pornography. In a few countries intervention is stronger, up to the level of pervasive censorship. This week Pakistan’s block on YouTube accidentally caused an international outage for that website. Iran and Saudi Arabia have also prevented their citizens from accessing the video-sharing site.  

Source: The Economist, Chart Gallery