Dial M for Mackerel..

The competition for rural India targeted information services is heating up with Nokia joining ITC eChoupal, Reliance and the Tatas. As I mention in this recent Wall St. Journal article with a catchy title "Dial M for Mackerel..." this is good news for the Indian farmer, and yet another chapter in the success of India's mobile telecoms story.

However, newer companies venturing into this tough tough market (think illiteracy meets fragmented land-holdings meets high price sensitivity) should be prepared to be in it for the long haul. Even in the best of circumstances, IT yields supermodular returns only when accompanied with the the necessary organizational complements (say process redesign accompanying an enterprise wide ERP implementation). Not only have the incumbent players (eChoupal) for instance invested heavily in developing the necessary societal complements (a "sanchalak" or a "human counselor" in every village plays a critical role in overcoming techno-socio barriers), the newer entrants will face the familiar chicken and egg problem of simultaneously growing a substantial user base and leveraging that data to offer highly personalized services.

Anyway, makes for an interesting space to watch...