E-commerce

in Education
Industry
Strategic Consulting
Urvashi Rana
Swena Gupta
Bhawna Shejwal
Sanam Puri
Mayuri Surwade
Prajnya

1


Executive Summary:
The Indian education sector is undergoing a transformation with the emergence of internet
and digital technologies.This has created new education portals with an advanced and
demanding customers. Indian education sector presents multiple opportunities and
challenges due to diverse socio-economic population mix, tech savvy users, government
initiatives etc.
With a population of over 1.2 billion and over 30% of school age, India boasts the second
largest education system in the world. Despite the presence of more than 1,400,000 schools
and over 3,500 diploma awarding (or higher education) institutions across the country, India
still lacks infrastructure in its conventional education system to serve a growing population.
Distance and e-learning programs are potential, seemingly obvious solutions to this
problem.
This report mainly evaluates two major aspects of e -education. How do Companies in a
chosen Industry, and E-Com players generate a meaningful, profitable, sustainable, revenue
stream and the projected evolution path for E-Com in a chosen Industry.
Technology is going to be a part and parcel of almost every learning experience. With the
advent of mobile learning, e learning websites, gamification and educational videos, there is
a whole lot of opportunities in the future of E-education segment. But along with
opportunities there comes challenges also like operational, infrastructure and most
importantly consumer acceptance of this concept.
But looking at the number of e learning websites ,the level of consumer acceptance and the
depth of technology awareness among the users, it can be concluded that there is an
optimistic future for Indian E Education sector.


2

Table of Contents
Industry Background.2
Indian E commerse industry...2
Indian E learning industry.2
E learning drivers in India..3
E lerning in various segments..4
Scope of E learning in India5
Revenue prospects in online education
Different Methods of revenue generation.7
On the basis of market segments in online education industry..8
On the basis of product categories in online education industry..8
Examples of revenue generation model of existing educational sites9
Strategy / Road map for Individuals entering into E-learning industry ................................................ 3
1. Know your market. .................................................................................................................... 11
2. Dont devalue learning .............................................................................................................. 11
3. Go for critical mass. .................................................................................................................. 12
4. Choose a business model first, not a technology. .................................................................... 12
5. Prepare to sell. .......................................................................................................................... 14
Future opportunities in this segment: ................................................................................................. 14
Mobile learning ......................................................................................................................... 14
e-Learning will be the main ingredient for successful blended learning .................................. 14
Social learning will accelerate ................................................................................................... 15
Technology will be part and parcel of almost every learning experience ................................ 15
There will be a burst of e-learning courses in languages other than English ........................... 15
There will be major changes in design ...................................................................................... 15
Gamification and videos will become a part of e-learning content.......................................... 15
Challenges faced by Indias online education industry ......................................................................... 16
1. Operational challenges ............................................................................................................. 16
2. Consumer acceptance ............................................................................................................... 17
3. Infrastructure challenges .......................................................................................................... 17
4. Issue Tree...18
5. Appendix. 19



3

Industry background
Indian E-commerce industry
For developing countries like India, e-commerce offers considerable opportunity. E-
commerce in India is still in the growing stage, but even the most-pessimistic projections
indicate a boom. In the present dynamic scenario, e-commerce market in the B2C space is
growing in demand. It is creating an entire new economy, which has a huge potential and is
fundamentally changing the way businesses are done.
Rising incomes and a greater variety of goods and services that can be bought over the
internet is making buying online more attractive and convenient for consumers all over the
country.
Indias consumer-facing e-Commerce market (B2C-C2C) grew at a whopping CAGR of 49.1%
from 2007 to 2011 to reach a market size of US$9.9 billion. Online travel, the largest
domestic B2C e-Commerce segment, accounted for 81% revenues in 2011.
The growth of the Internet, e-commerce and telecommunications has created tremendous
opportunities and challenges for both societies and economies. Information Technology (IT)
is also having a profound effect on education. IT is one of themost powerful enablers, which
facilitates learning and administration.
IT has opened up the world of education. It provides new tools for teachers and the
students. And it opens up the whole world of knowledge and allows teaching and learning
to take place beyond the traditional boundaries and resources of the school.
The Internet can provide inquiry-based learning where the most proficient people in the
field answer questions. It also allows enormous scope for discussions and exchange of
views, facilitating multidisciplinary research, and collaboration across different fields, and
between researchers and students across geographical boundaries.
Indian E learning industry
Indias online education market size is predicted to grow to $40 billion by 2017 from the
present $20 billion. According to a research report, Indias E-Learning market is estimated to
grow at a CAGR of 17.4% over the period FY2013-FY2018 owing to many reasons like -
increasing government initiatives to promote e-learning, increasing adoption of technology,
shortage of quality education, convenience and cost factors and others. Corporations are
also coming in to facilitate talent acquisition and training processes using e-learning content
and technology. This overall increases the customer base and in turn will increase the
market share.
The technologies which elicit education to shift online are e-learning softwares, hardwares
and technologies such as LMS, Web 2.0, cellphones, laptops, connectivity solutions, hybrid
devices such as tablets, phablets and others, as people are increasingly comfortable in
operating modern gadgets. The Internet has changed the online learning segment in current

4

times with a larger number of educational institutes, corporates and also training centers
providing knowledge by means of online courses and programmes.
E learning drivers in India
English language vernacular: The initial wave of e-learners from India has been those who
have a comfortable grasp over the English language. Content providers, both domestic and
international, have found this a very attractive characteristic.
Continuous Professional Development (CPD): The highly competitive corporate world
requires staff members to be up-to-date with the latest developments and constantly re-
skill and up-skill. E-learning offers access and learning at a time and place that is
convenient to the learner also known as just-in-time (JIT) learning.
Spread of the internet and mobile networks: By mid-2015, India is predicted to house the
second largest number of
internet users in the
world. This bodes well for
e-learning providers as
for the first time, over
200 million people will
have direct access to the
internet. E-learning is
being touted as a game
changer by providing
access to quality learning
and up-to-date content
across the country.
Government Initiatives: In 2012, the Indian government first unveiled the concept of meta-
universities19 as a networked repository of knowledge that allows students access to cross-
disciplinary education from different institutions.
Centrally funded Delhi-based universities Jamia Milia Islamia, Delhi University, Jawaharlal
Nehru University and the Indian Institute of Technology form the founding members of the
Meta University. The main aim is to allow learners to access learning resources of different
universities remotely. The initial course, a Master in Mathematics Education was jointly
advertised by Jamia Milia Islamia and Delhi University, two of the countrys top institutions,
in April 2014 The Indian Institutes of Management (IIM) have announced that they will
launch an e-learning portal to make their curriculum more interesting and effective. The
move follows the growing popularity of The Indian Institutes of Technology (IIT) web portal -
National Program on Technology Enhanced Learning (NPTEL21) which is a joint venture
between seven Indian Institutes of Technology (IITs) and the Indian Institute of Science
(IISc), Bangalore.
India launched a dedicated satellite (EDUSAT22) in 2004, built exclusively for serving the
educational sector. In 2011, the Indian government decided to subsidize 12 million Aakash
tablets (also see separate section on Aakash tablets) at CAD 37 per tablet opening up online

5

learning to the approximately 800 million Indians who currently have no access to the
internet but have mobile phones. The new National Democratic Alliance (NDA) government
is expected to review the Prof. Madhava Menon Committee Report23 recommendations
that suggest measures to regulate the standards of education being imparted through
distance mode. Among other suggestions, this Report recommends the widespread
introduction of distance learning programs in universities across the country.



E-Learning in various segments
The e-learning market in India is a fragmented market as far as opportunity and solution
providers are concerned. The provider side is led by players who offer Learning
Management Systems (LMS)/technology platforms, content or assessment solutions. On the
user side, there are opportunities in K-12, Higher Education (H.E.), professional courses, Skill
Development, English language training, test prep (GMAT, GRE, TOEFL, IELTS, IIT-JEE, etc.)
and MOOCs.


Scope of E learning in india
Over the years, technology has been playing an instrumental role in making our lives easier
and like everything else, it has eased the process of getting education to a great extent.
From high-tech school laboratories to virtual classrooms, the ways and means of education

6

have been constantly evolving. The worldwide web (www) is one platform where everything
and anything is available and education has also found its way into this phenomenon.
People living in one part of the world can earn a degree from an academic institution in
another part via e-learning. Some of the renowned universities in the world have virtual
campuses wherein they invite students from all corners of the globe to enroll in an
academic program. The advantage of e-learning is that it makes a pitch for studying at one's
own pace that too in the comfortable confines of his own space.
Due to these flexibilities it offers, e-learning has gained popularity not only amongst
students, but working professionals as well. Jobholders join up an e-learning course
relevant to their field of work and study while they work. This has become a common norm
in many parts of the world for professionals to climb up the corporate ladder. In India,
however, e-learning is at its nascent point but the word is spread and it is evolving at a good
pace.
Many people in India are Internet-savvy and prefer reading e-books to regular ones and
watching educational videos to counseling in person. In addition to that, they look forward
to earn more educational degrees or certifications without compromising with their regular
academic courses or jobs. These are the key reasons people are catching up with e-learning
at flashing speed.
As far as the scope for expansion of online education is concerned, the prospects for this
convenient mode of learning seem to be fruitful. Except for several rural areas, Internet is
available in all parts of the country brewing the accessibility of e-learning courses easier for
aspirants. People living in less developed parts can get quality education even in the
absence of a good university.
- The education sector presents huge opportunities for private participation.
According to Census figures, over 32% of the 1.1 billion population is between the
age group of 0-14. India is fast emerging as a knowledge-based economy, and
human capital has now become its major strength. This has brought to light severe
inadequacies in Indias infrastructure for delivery of education.
- For a middle class household in India, spending on education comes second only to
their spending on food and groceries. With its rapidly expanding middle class, Indias
private expenditure on education is set to increase manifold.
- The online K-12 education industry is worth $1.5-2 billion at this point of time and
with competition toughening among students, custom learning solutions deployed
online see quite a few takers.
- It helps that India is full of young people who possess a high comfort level with
technology. The population in the age-group of 15-34 increased from 353 million in
2001 to 430 million in 2011 and is predicted to grow to 464 million by 2021(Source:
Report by IRIS Knowledge Foundation).
- More and more kids are now using Tablets and smartphones. Tablets in the
education space will be the game changer in the months to come.

7

Revenue prospects in online education
Revenue generation in such businesses is unconventional and can be generated in the
following ways or in the combination of the below ways
Ad based module Websites host advertisements of other online and offline
learning centres and institutes. Such ad hosting generates revenue.
o Fixed Charges -
Advertisers can be charged rate card price to the number of its ads shown to
site visitors. These ads may be served by the site owners own ad server or
more commonly through a third-party ad network service such as Google
AdSense.
o Frequency of clicks -
Advertisers are charged as per number of times their ads are clicked. These
ads are similar to sponsored links which come within a search engine but
here they are delivered by third-party sites.
o Sponsorship
Companies pay to advertise a site channel or section for a fixed amount per
year.

Lead based model Website here host the links of other online and offline institutes

Pay Model - The websites here first make the consumer know the product by
provision of free content through samples and charge fees to make the full content
available.

Freemium model in this case, the product / service is provided free for certain time
period, after which charges are levied. In some cases, charges are put for added
advanced features / functionalities.

Donation model - This is a not for profit agenda and invites donations from larger
corporates to continue this social service.

Affiliate revenue - Affiliate revenue is commission based model. Websites can display
some other online websites link or advertisement and receive a % commission fee
from those websites. Such an arrangement is sometimes known as Cost per
Acquisition (CPA). Here the advertiser has more negotiating power







8

Revenue generation as per different market segments in online education industry

Segments K-12 University Professional MOOCs* Language
courses
Test
preparation
Value
propositions
Content
provider
Technology
partner
Platform
provider
Certification Pedagogy Introduction
to potential
employers
Cost
considerations
Content
Development
cost

Digitization
cost
Platform
building
Intellectual
property
License
fees

Revenue
models
Student fees Revenue
share
Franchise
fee
Consultation
fee
Content
license
Teacher
training

MOOCs* - - Massive open online courses
Source - /E-Learning-Market-in-India-Opportunities-for-Canadian-Companies%20(1).pdf


Revenue Generation as per different product categories
Product Categories Sub segments Revenue collection
DVDs & CDs ICSE K-12 Product selling
CBSE K-12 Product selling
State boards K-12 Product selling
University Product selling
Entrance Exam Prep Product selling
Language courses Product selling
E books same as above Product selling
Online tutoring same as above Student fees
Free study Material same as above -----
Information sharing same as above
Free /
subscription
Free / subscription
fees







9

Examples of revenue generation model of existing educational sites

1. Shiksa.com: Shiksha.com , still in beta, the site has a majority of the elements
that should make it a useful and popular resource amongst students: information
on almost 70,000 colleges, courses, scholarships; ability to form and maintain
college groups; Q&A, allowing students to ask questions and receive "expert"
answers on all topics related to education/ careers; and expert
articles. Shiksha.com is part of the naukri.com group-Indias No.1 job portal.

Educational institutions should find the site to not only be a good platform to get
visibility for their courses but should also find the e-mail and SMS push from the
site to be particularly valuable. For instance, if a student is interested in a
particular course, the student can choose to get an e-mail and a SMS giving
details of the course.

There are two main models of revenue generation for the site a) Fees from
educational institutions to get additional visibility and more features/ functions [the
gold & silver package options, pricing for which are not listed on the site]. b) Passive
advertising, using the Google AdSense program.

2. Tutorvista.com:TutorVista.com has built a business model where tutors from
across small towns in India log in from their homes and help students across the
world. This model offers 24/7 personalized help to school children in the US, UK
and South Korea reliable communication networks create experiences like these
for 650 tutors, most of them in India, and 20,000 students across the world
.
Besides online tutoring TutorVitsa also provides Test Prep Help, Homework Help,
Supplemental Tutoring and Expert assistance before tests and exams. The Company
has grown rapidly with over 5 million online sessions served to students worldwide.

Revenue generation approaches of Tutorvista.com:
Only a third of TutorVista revenues comes from overseas the rest comes
from India
Last year, the company started an e-commerce venture to sell educational products
such as CDs, books and even online courses. Traffic at the website has been growing
50% month-on-month flat monthly fee ($100 for school students and $200 for
college), The website receives around 6 million unique visitors a month and business
has been growing at 50% y-o-y since inception

10

The company raised about $33.25 million in VC funding from investors such as
Sequoia Capital, Lightspeed Venture Partners, Manipal Education and Silicon Valley
Bank. Westbridge Capital Fund, the earlier avatar of Sequoia Capital, was one of the
earliest investors in the company, having invested $7 million in two tranches in FY08.
Now the business model has changed. Barely a third of TutorVistas revenue comes
from the overseas market; instead, India accounts for the lions share of income
and not from online tutoring.
it is difficult for TutorVista to scale its US-business, since the company has never
targeted students with much potential to pay.
TutorVistas Indian business is managed through Edurite (acquired in 2007), which
provides digital content to over 3,000 schools, and runs 30 K-12 schools. Digital
content accounts for 50% of its income. It delivers the content, after which the
school pays us in instalments of Rs 100-150 per student per month,
For the schools, the company follows an asset-light model (it had initially started
managing schools in partnership with Manipal Education in December 2009 but now
schools are run under the Pearson brand name, since Manipal exited TutorVista

3. Educomp Solutions Limited, Indias largest education company, Educomp
Online is already being used by 30 lakh learners across 3000 schools in India &
aims to help revolutionize the learning process in the country by revolutionizing
school education
Educomp are dominant player in digitized school products segment. The market
for digitized school products about is around $ 500 mn in private schools and $
750 mn in government schools. The private school market is likely to grow 20 %
cagr to reach $ 2 bn by 2020 and the government school market is set to grow
five times by 2020.
The business model of EducompOnline encompasses revenue generation
through two broad streams:
1. Subscription- The fees users (students) or their school pays for the usage of
EducompOnline.
2. Online advertising- The fees charged from relevant advertisers for placing their
ads on EducompOnline site & similar commercial alliances.



11

Strategy / Road map for Individuals entering into E-learning industry
1. Know your market.
The market size of the Indian Education industry aggregated to Rs. 3,833.1
million during FY2013 according to Care research. . Indian e-learning industry
is set to reach $1.29 billion by FY 2018 with the e-learning content market
expected to grow at a CAGR of 18.4% from FY 2014-FY 2018. India aims to
transform itself into a knowledge economy, and the demand for educational
resources is growing. In the higher education space alone, India faces a
monumental shortfall of over a thousand universities and 45,000 colleges
in the next ten years. A country with such a gap in bricks and mortar
education facilities, but whose citizens spend 58 hours a week online, access
the internet from home, and will likely achieve 72% mobile services
penetration by 2016, has the potential to find a solution through e-learning.

SWOT Analysis





2. Dont devalue learning
Many associations assume that e-learning is worth less than classroom
instruction; some charge as little as $25 per online hour. But cutting costs
doesn't necessarily mean charging next to nothing, because internet-
delivered learning cuts such costs as travel and accommodation. Once an
association has acknowledged that its e-learning program is worth paying for,
it has to decide exactly how much to charge. There are many models to

12

choose from: subscription-based pricing, for example, or setting prices
according to the size of the user's organization.


3. Go for critical mass.
Sustainable business model
It's important for executives developing an e-learning business model to look beyond
today's hot-button issues, which can come and go. Instead, they should focus on
perennial industry issues to help support a sustainable business plan.
For Example, the eShiksha offering from SREI Sahaj under the Government of Indias
Common Service Center (CSC) scheme
Content partners: Indira Gandhi National Open University (IGNOU) for certification,
George Telegraph, Aptech, GAAP Education, etc.
Business model: For profit
It provides online courses to rural students which are certified and helps in
improving the employment skills.


4. Choose a business model first, not a technology.
A business plan or blueprint is vital when you are selecting a technology partner.
Executives should make sure the technologies they implement serve the plan, rather
than giving nonessential functionalities more weight than they deserve.

1. Business model:
Delivery of quality school education in rural areas through ICT intervention
Input
Connectivity: High-speed broadband access, to be made available till the
Panchayat level through NOFN
Training and manpower: Initial training to Government school teachers to
be provided by the education service provider for a period of 3- 5 years,
after which, the running of the centers could be transferred to the schools
Physical infrastructure: School building, power supply and power back-up
(including alternative renewable energy sources such as solar power),
audio-video equipment and computer terminals.
Marketing: To be undertaken by the private education service provider, in
collaboration with the Gram Panchayats

Cost
Private education service providers to bear the cost of setting up and
maintaining the ICT centres in the short-to-medium term

13


2. Business Model:
Skill development and employment generation through certified vocational
training courses delivered remotely with the help of ICT
Input
Connectivity: Fibre connectivity at the CSCs, provided as part of NOFN. As
seen from the example of Sahaj, this model is already in operation and is
not dependent on high-speed broadband connectivity.
Training and manpower: To be provided by the private training service
provider for a limited period of time. Afterwards, the Village Level
Entrepreneur can take charge, with the help of the resources that he
employs at the CSC
Physical infrastructure: Building/room, power supply and backup
(including alternative renewable energy sources such as solar power),
computers, headphones, speakers, etc.
Cost
Capital expenditure: Investment for setting up the electronic facility,
including computer terminal, headsets, router, etc. Additionally, if a diesel
generator set is required for power back up., the investment could be in
the range of ~INR 3-4 lakhs26. Most of this infrastructure already exists at
the CSCs.
Operating expenditure: The private training service provider can bear the
cost of providing the service.
Revenue stream
The education service provider recovers the cost of service from the learners
on a commercial basis

14




5. Prepare to sell.

Along with the marketing plan for the business plan, it's most important to
encourage a sales culture among the association's staff. Actively, train everyone on
your staff to speak knowledgeably about your e-learning offerings and to convey
your value proposition clearly.


Future opportunities in this segment:
Mobile learning
Mobile learning is being embraced in India in a big way. According to Ambient
Insights research India has bypassed e-learning and is headed straight for mobile
learning. 86% of corporate employees in India have expressed their preference to
learn via mobile devices. According to a latest Brandon Hall Group research on
mobile learning, 73% organizations are already using mobile learning in some form,
and 87% organizations plan to increase their use of mobile learning in the coming
year. Tablets are also set to take over the smartphone when it comes to mobile
learning.
e-Learning will be the main ingredient for successful blended learning
To make training possible for employees on the move, companies have turned to
blended learning, especially for training elements where face to face interaction

15

cannot be done away with completely, but can be reduced. A blended learning
program combines two components face-to-face interaction and an online
component. As companies are increasingly spread out geographically, the e-learning
component is significantly gaining prominence, especially in companies who believe
in providing the best training and opportunities to employees to reach their
maximum potential in the workplace.
Social learning will accelerate
E-Learning platforms are increasingly supporting social media components which
learners use to connect with like-minded people and form groups to collaborate and
share thoughts and ideas, AND learn. This trend is set to accelerate as people in
general are getting more hooked to the idea of liking and sharing.
Technology will be part and parcel of almost every learning experience
There is a large section of the education sector as well as the corporate sector that is
untouched by technology. Sticking to the old school of thought and a hesitancy to try
something new are two major reasons for this. However, recent reports from all over
the world suggest that there is a shift in this mindset, and these same people who
once turned their noses to technological advances are now looking at technology as
the new savior, to better the learning experience.
There will be a burst of e-learning courses in languages other than English
Here is something that most of us dont know: while English is considered as the
worlds most widely used language, with over 1.8 billion users worldwide, 75% of the
world population does not understand English. Another fact: the fastest growing
economies are non-English speaking. Latin America for one imports all its e-learning
courses; and a deal-breaker for anyone trying to gain access into this region would
be offering their services in English alone. Spanish is the preferred language here and
in several parts of the world such as certain pockets in America and Europe as well.
As developed markets saturate, we will see the e-learning industry offering courses
in several languages other than English.
There will be major changes in design
Until recently websites were stuffed with text and images and packed tight with
functionality and information that made it seem like too much was not enough. In
near future, bling will take backstage, while simplicity hogs the limelight. White
space, flat design and big images will be the order of the year. Clean designs that will
speak volumes through their simplicity will be the trend.
Gamification and videos will become a part of e-learning content
The term gamification was coined in 2002 (although in principle it existed much
before that), but did not gain popularity until 2010. Interactivity in gamification is
addictive. Learning through gamification takes place spontaneously and faster than

16

otherwise. Gamification enhances problem-solving skills and creativity, inspires
interest in boring topics, helps employees process information faster, and improves
multi-tasking abilities.
Also, the importance of videos in e-learning is increasing. The fact that YouTube is
the second most visited search engine after Google says a lot about videos and how
much we enjoy them. Videos are engaging and keeps a learners interest alive. Every
e-learning experience will be accompanied by gamification and/or videos in the
coming years.
Challenges faced by Indias online education industry
Based on the literature review of the e-commerce industry along with the online education
business in India, we have broadly classified the challenges faced in three categories:
1. Operational challenges
Computer illiteracy
Both students and facilitators must possess a minimum level of computer
knowledge in order to function successfully in an online environment. Students
must be able to use a variety of search engines and be comfortable navigating on
the World Wide Web, as well as be familiar with Newsgroups, FTP procedures
and email. If they do not possess these technology tools, they will not succeed in
an online program; a student or faculty member who cannot function on the
system will drag the entire program down.
Customization of products as per consumer needs such as vocational trainings
along with professional courses
Limitations of Technology
User friendly and reliable technology is critical to a successful online program.
However, even the most sophisticated technology is not 100% reliable.
Breakdowns can occur at any point along the system, for example, the server
which hosts the program could crash and cut all participants off from the class; a
participant may access the class through a networked computer which could go
down; individual PCs can have numerous problems which could limit students
access; finally, the Internet connection could fail, or the institution hosting the
connection could become bogged down with users and either slow down, or fail
all together. In situations like these, the technology is neither seamless nor
reliable and it can detract from the learning experience.
Cost and integration
The main barriers to widespread adoption of e-learning are 1) cost, 2) integration
into the existing curriculum, and 3) setting up the required infrastructure at
bricks and mortar institutions of learning. There is also a certain amount of
resistance from faculty who are not computer literate and are intimidated by the
prospect of e-learning. Without proper accreditation or recognition, students are
also wary of taking up e-learning courses. If we build it, will they come? is a
perennial question that worries new entrants to the e-learning market in India,

17

says Brad Loiselle of SKILLSdox. One of the surest ways to get local partners to
spend quality time is to assure them that you will invest in developing solutions,
technology, and content, including others. In the SKILLSdox model, the local
partner is assured of a share of the revenue and is not asked for an upfront
investment. Loiselle believes this helps reduce the risk of exposure for [local]
partners.
2. Consumer acceptance
Mind-set of consumers could be a big challenge
Focus on teacher enablement rather and not on teacher replacement.
Lack of awareness among Indian masses
the greatest challenge to online education is to educate the masses that
online education is a genuine method to upskill and reskill oneself. There is this
general mentality that physical presence of the teacher is necessary for effective
learning. Ishan Gupta, CEO, EduKart (www.edukart.com)
People in India are used to free online courses. Though international programs
can and do charge a premium for their courses, the choice will always be
between cost and volume. Sushil Karampuri, founder and CEO of eAbyas78 (a
Moodle based open-source LMS) chose the open source learning platform
because he believes that given a choice between price and brand, the Indian
consumer will always choose price over brand

3. Infrastructure challenges
Payment collection
A large base of Indian consumers is still not very comfortable using credit cards
or doing an online transaction. There is very low penetration of credit and debit
cards
Low average broadband speed and flat average internet speed cause for concern
High failure rate of online payment transactions
Regulatory framework in India
The closest regulatory guideline that currently governs e-learning delivery is the
same that covers distance learning in India. This is often referred to as
Gazette Notification No. 4477, which states that all qualifications awarded
through distance learning by institutions established under the University Grants
Commission (UGC) Act, 1956 will be recognized for the purpose of employment
in government jobs in India.
However, no specific regulations have been laid down to date to govern either
domestic or overseas institutions offering e-learning programs. As the Gazette
notification states only for the purpose of employment to posts and services
under the Central Government, qualifications must be recognized by the UGC. If
students are not planning to work for the Central Government, the relevance of
this regulation may be moot, but the allure of stable and highly respected
employment with the government cannot be eliminated entirely. At the time of

18

this writing, the new government has not yet achieved its first 100 days. The
India Trade Commissioner Education team and Edu-Canada will be closely
monitoring any new developments.


Issue tree









19

Appendix
http://www.thehindu.com/sci-tech/technology/internet/india-has-slowest-internet-
penetration-growth-in-apac/article6085420.ece
http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/KP
MG_CII_Broadband_Report_Final.pdf
http://www.bdaconnect.com/admin/webEditor/uploadFile/BDA-
CII%20White%20Paper%20-%20Wireless%20India%20-%2006%20June%202007.pdf
http://www.docebo.com/landing/contactform/elearning-market-trends-and-
forecast-2014-2016-docebo-report.pdf
http://www.enablem.com/pdf/E-Learning-Market-in-India-Opportunities-for-
Canadian-Companies.pdf
http://economictimes.indiatimes.com/news/emerging-businesses/regional-
hubs/north/revenue-prospects-in-online-
education/articleshow/18766867.cms?intenttarget=no
http://www.smartinsights.com/digital-marketing-strategy/online-business-revenue-
models/online-revenue-model-options-internet-business/
http://www.business-standard.com/article/companies/pearson-education-services-
launches-e-commerce-portal-for-indian-students-112101800186_1.html
https://www.cisco.com/web/IN/thehumannetwork/assets/pdf/Tutor-Visa.pdf
http://www.outlookbusiness.com/printarticle.aspx?282626