NextBillion.net - Development Through Enterprise - n-Logue's Rural Connectivity Model - Comments

I worked at n-Logue

John Paul — Thu, 23 Feb 2006 11:57:10 -0500

While I agree that there are far too many lofty media reports about n-Logue and similar rural IT projects, I can assure you that none of our case studies are based on them. WRI always sends a team of researchers in-country to personally investigate the enterprises we write about. As for n-Logue, I wrote the case study after spending a year working for the company in India, so I know quite a lot about both the venture and Prof. Jhunjhunwala.

You’re correct in pointing out that a number of kiosks are defaulting on their bank loans, but I don’t think it’s entirely due to n-Logue’s failure to provide sustainable services. While the company does provide a number of applications to get the business started, the kiosk owner is not limited to selling only these. For example, although n-Logue produces its own computer education courses, kiosks reported earning almost twice as much from third-party education applications. In fact, the majority of reported earnings (see Appendix A) did not come from n-Logue services at all.

As I point out in the case study, the biggest factors in determining the success of a kiosk are the skills of the operator. It’s not an easy job. To be successful, the kiosk operator must perform many roles, including salesperson, marketer, teacher, service provider, and computer professional. While I agree that n-Logue could do a better job vetting potential operators, it’s hard to judge in advance who will be a successful entrepreneur. At the end of the day, the kiosk is a business just like any other. n-Logue can help start it and provide on-going training and support, but the kiosk owner is ultimately responsible for its success or failure. And it’s worth pointing out that many have made the business a success.

Regarding the EMI obligation, the kiosk owners are aware that they don’t have to pay it for the first few months. The loans are purposefully arranged that way to give the operators a chance to build a customer base for services that are often unique to the areas where they are offered. Personally, I think that the lead time should be greater, but that decision is made by the banks, not n-Logue.

I’ll be the first to admit that there are a number of things n-Logue could do better, but that doesn’t mean the company is run by crooks. While there, I worked with a staff dedicated to helping the kiosks succeed. But there’s only so much a struggling start-up with limited resources can do. It’s a tough business environment for any company to succeed in, and I’d encourage you to read the case study in full to better understand these external factors before judging the company so harshly.

What do u know about n-logue

Anonymous — Thu, 23 Feb 2006 07:00:04 -0500

What do u know about n-logue & Prof Jhunjhunwala ? I think u have based ur opinion only on lofty media reports. If u may just scratch the surface , u will know the farce going on at n-logue in the name of rural development. Scores of their kiosk are defaulting on bank loans simply because the company has not given them any sustainable services. If arranging for loan to purchase pc and all constitute a kiosk , then anybody can do it. n-logue has been fooling gullible village folks by luring them into buying their internet connection & Pc hardware. The loans are easily arranged for national banks & for first few months there is not emi obligation for user (which the poor guy does not even realize). the company makes fat margin both on Pc hardware & 1 year internet coonection. Plz open ur eyes, do not peddle Ashok Jhunjhunwala concept without probing. He is probably the biggest crook , we may be having in the rural development business making money with both the hands.

n-Logue's Rural Connectivity Model

John Paul — Tue, 04 Oct 2005 10:00:32 -0500

Date of talk or publication:
December 2004

Organization:
World Resources Institute

Description:

n-Logue Communications is setting up a sustainable network of wirelessly-connected Internet kiosks in rural villages throughout India. Through the kiosks, villagers are able to access a wide-range of relevant local language content and services aimed at enhancing the quality of life of rural Indians. To enable its rapid expansion, n-Logue has employed a three-tiered franchisee model that empowers local entrepreneurs to invest in and help run the network. As the company scales, there is enormous potential to leverage n-Logue's rural networks in ways that take advantage of both existing and new technologies in the areas of health, finance, agriculture, e-government and civil society empowerment.

To view the case study, either click on the attachment below, or view the original link here.