A Survey of Data Network Options for Rural Areas: A Business Model for Asynchronous Messaging Abstract To make a rural connectivity project sustainable requires rigorous planning. We created models for estimating cost and revenue based on technology options and usage patterns. A comprehensive survey of various network technologies culminates in a cost calculator, which can be used to approximate an implementation budget. Anticipating bandwidth and energy constraints, we recommend communicating asynchronously at high latency to conserve scarce resources and minimize cost. To support revenue generation, a cooperative franchise utilizes peer groups to train and motivate entrepreneurs as they develop and market ICT services that address consumer demand. This multilevel, for-profit business model takes into account the critical role that adoption rate plays in determining profitability. Finally, an actual case study demonstrates how to apply this framework to make informed technological and business decisions and thereby move a project closer to sustainability. Stephane Guerraz, Sukun Kim, Adam Ludwin, Hong Qu, and Tu Tran University of California at Berkeley December 15, 20031A Survey of Data Network Options for Rural Areas: A Business Model for Asynchronous Messaging I. Introduction Characteristics of rural areas Rural areas in developing countries present especially difficult challenges to the development of networks and sustainable business projects. These challenges include unreliable electricity, limited or non-existent telecom infrastructures, poor road infrastructures, diverse topology, and low village density. These challenges are coupled with limited skill sets and limited financial resources among members of the communities. Members of rural communities are often characterized with high illiteracy, limited business skills, little technology skills, and lack of access to capital. Asynchronous delivery methods We pursued a model of asynchronous delivery methods to tackle some of the technical challenges in rural areas. Asynchronous delivery methods have different characteristics at the hardware and application level. At the hardware (or network) level, an asynchronous model could entail periodically turning on and off the whole network. At the application level, an asynchronous model, as we envision it, entails connecting to the Internet on need basis (staying offline until a request for Internet data), caching content in hard drives, and delaying transfer of data to off-peak hours. At both levels, an asynchronous model is not constrained by delay, since connections to the network are scheduled and moderated. There are many benefits to asynchronous delivery methods. At the hardware level, an asynchronous model would require less power since less energy is spent having the radio on. An asynchronous model at the hardware level could also decrease maintenance costs, since down time only increases delay and does not disable service. At the application level, an asynchronous model using our proposed characteristics could lower the bandwidth requirement, decrease network technology costs, and limit over utilization (more users can use the system since full-time access does not need to be guaranteed). The focus of our research is an asynchronous model at the application level. For a discussion of asynchronous delivery methods at the user level, see Appendix A. Research Questions Given the characteristics of rural areas and the benefits of an asynchronous model at the application level, the research questions we addressed in this project were two-fold: 1) How to develop a quantitative method for selecting cost-effective data networks given project specific variables such as bandwidth requirements and village density?2 2) In what ways can we optimize bandwidth utilization using asynchronous delivery methods? 3) What commercially viable business models can sustain these services? The model we used to address these issues is depicted below: The model is based on a need to balance costs and revenue, given a demand for ICT that is manifested in specific applications or services. In rural communities, we envision the best way to provide ICT applications and services is through village kiosks. We explore the concept of village kiosks in the business models section. In the above model, we examined the cost of the network and kiosk, which includes the set-up costs and operating costs. Our revenue model is based on income level of potential consumers, the usage frequency, population density, and savings from ICT. In additional to balancing cost and revenue, this model illustrates the bi-directional feedback mechanism determining application services. While multimedia applications could generate high revenue, the cost of setting up a high bandwidth network may be too expensive. Hence, the network budget constrains the types of application services offered. Yet if some high bandwidth applications (e.g. videoconferencing or music videos) are in high demand, then the marginal revenue may be high enough to offset the marginal cost. Thus, the array of ICT services is initially limited by the technology budget, but usage trends may uncover new services that could be profitably deployed. In the next sections, a survey for network technologies is presented, a formula for network cost estimation is explained, and a sustainable business model is proposed.3II. Survey of Network Technology Options Rural connectivity projects evaluate networks technologies based on many criteria. There are numerous metrics to consider: bandwidth, range, latency, energy cost, installation cost, and maintenance cost. The long list of technologies compounded by their associated metrics can easily overwhelm an evaluator. Since technical standards are published and relatively unchanging, we compiled metrics for each network technology. A comparative survey enables project planners to skip the step of data gathering. The table of metrics for various network technologies can be found in Appendix B. Types of Network Technology The list of technologies is broken down into three categories: satellite, wireless local loop (WLL), and wired. Although satellite and WLL are both wireless, we separated them in order to consider the cost of towers. A high level analysis reveals the pros and cons of each technology category: Table 1:
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