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OLPC and Intel

Category Open Source
When did fighting over the underprivileged become such big business? Businessweek had a tremendously interesting account of how corporate banks are making money with micro-loans to the poor. These lending institutions have no altruism in their portfolio--the rates frequently exceed 100%.

So, now I read that the tumultuous relationship between Intel and Negroponte's OLPC has officially ended with a huff--and it's all over how to introduce computer technology to the under served. The New York Times explains,

For emerging markets, Intel has been backing its own, more expensive Classmate PC, which sells for about $300. Mr. Mulloy said Intel was unwilling to walk away from support agreements that the company had made for that machine and other systems.

The key element of dissension is over what is being built, and despite the mano-a-mano summaries of the popular press, this conflict has nothing to do with laptops, or Linux. Intel wants to see in-roads being made into developing economies; working with new system integrators and building up a channel. Intel has a business case. Negroponte has a mission.

Where's the infrastructure for the OLPC? Is this an enterprise development with plans for an OLPC II, or bringing in overseas professional expertise? Nope. He wants to rely on an army of children.

"What you want is for the kids to do the repairs," said Negroponte, who believes such tinkering is itself a valuable lesson. "I think the kids can repair 95 percent of the laptops."

That's not the quote to bring investment angels to the table. What is up with Negroponte and his OLPC? In my mind, the OLPC is the rock in David's sling that is being aimed squarely at the Goliath of mercantile interests. It's not that Intel is selling their Classmate with deceptive marketing (remember Nestle trying to convince poor mothers that canned milk was superior to breast feeding?). It's just that the solution Intel is offering doesn't really address the need. Developing economies have so much ground to make up, that the corporate model doesn't make any sense (not yet, at least).

In an op-ed from The Nation, in Nairobi, the view is seen for a local government-sponsored effort:

The digital villages project, though it will not serve all corners of the country, will be critical in the diffusion of the internet because local entrepreneurs will be able to replicate the business model and set up computing centres of their own elsewhere.

But this will happen only when people see the viability of the government-supported digital villages.

The OLPC fits in nicely to an indigenous solution, especially with it's ability to create a point-to-point mesh network, and open-source platform.

It's just a different sort of business plan.

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