SriLanka Lessons Learned

From 2006-2008, USAID, through the Last Mile Initiative (LMI), implemented a highly innovative experiment in expanding rural Internet access in Sri Lanka. In 2006, USAID put out a Request for Proposals (RFP) that called for the opening of 20 rural telecenters connected to wireless broadband Internet technology. USAID left applicants considerable latitude to propose innovative approaches to support the opening of these centers. Rather than follow the traditional route of telecenter deployment that relies heavily on subsidy from donors or governments, SSG Advisors (SSG) proposed a unique micro-franchising business model for the projects. Called Telecenter-in-a-Box, the business model leveraged the knowledge and expertise of local entrepreneurs with the latest wireless technologies, including HSDPA (a 3G technology) and Wi-Max. Telecenter-in-a-Box included everything the rural entrepreneur needed to succeed: training, access to finance, business planning, pricing, marketing, 24/7 tech support, connectivity etc. All of this was provided to the local franchisee without subsidy and entrepreneurs charged customers fees for Internet, VOIP calling and other services offered through the centers. Thus, each center operated as an independently owned and operated franchise business. To make Telecenter-in-a-Box a reality, SSG relied heavily on a series of public-private alliances with both Sri Lankan and international companies such as QUALCOMM and Dialog Telekom. Over two years, USAID via SSG opened 55 telecenters (under the local Easy Seva brand name) in rural communities throughout Sri Lanka, far exceeding the original parameters of the RFP. Each center was equipped with 3-5 PCs, a printer and Customer Premise Equipment (CPE) connected to a wireless broadband connection. As of late 2008, the Easy Seva model had a 90% success rate and the whole initiative is now being carried forward on a commercial basis by Dialog Telekom.

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