Facebook will start operating as an internet service provider (ISP) across rural areas in India. The company has acquired bandwidth from state-run operator Bharat Sanchar Nigam Limited (BSNL) in 125 rural areas for INR 100 million for three years, BSNL chairman and managing director Anupam Shrivastava told Business Standard. Facebook will enable entrepreneurs to offer internet in small data packages of INR 10 to end-users.
Consumers will have internet access through WiFi hotspots set up by BSNL's partner QuadGen. The Wi-Fi services run on an unlicensed band (2.4 GHz) and customers can access the internet at speeds of around 2 Mbps, Shrivastava said.
Facebook plans to provide WiFi-enabled broadband services under its Express WiFi project, which is currently in beta phase. "This [Express WiFi] will empower a local entrepreneur to purchase inexpensive hardware and start business to offer internet access in their town or region. Besides, it will also allow customers to purchase fast, reliable and affordable data packages to access the internet via local hotspots", said Munish Seth, country manager-connectivity solutions, Facebook India.
Facebook has already developed customised software for rural markets across India, to support billing and alerts on data usage. Facebook will partner with local ISPs to expand network access, in addition to the development of a connectivity ecosystem by providing technical and financial assistance to local ISP partners as well as entrepreneurs, Seth added.
"Scaling this solution (Express WiFi) will offer benefits to India, including providing a new base of small businesses and accelerating the spread of affordable internet access, which will have economic and social benefits across the country. The long-term objective is for the business model to be economically sustainable for allowing our ISP partners and entrepreneurs in rural India to run a profitable business," Seth said.
