Friday, May 17, 2013

56 - Confusion Reigns Over Datawind’s Future With Aakash - Wall Street Journal

23rd Feb 2012
Agence France-Presse/Getty Images


Aakash, the world’s cheapest tablet, pictured in a handout photograph in Montreal, Canada, July 30, 2011.

The world’s cheapest tablet, “Aakash,” is in the news yet again. Not, this time, for marking a “milestone” in technological innovation. Nor for subsequently being labeled “a dud.

Rather, India’s homegrown tablet is now attracting attention for a reported dispute between the device’s manufacturer, DataWind Ltd. and the Human Resources Development Ministry, which was responsible for its development.
What triggered this controversy? A Press Trust of India report Monday claimed HRD Minister Kapil Sibal had severed ties with the Canadian startup.

“There have been some problems with Datawind I must confess,” Mr. Sibal told the news agency on Monday.  “I have got into the act…. and I am going to ensure that this product is fully indigenous,” he added.

On Tuesday, Livemint quoted unnamed “senior government officials,” who claimed that the “HRD ministry will float a fresh tender” to invite new manufacturers this week.

The report added  that the government plans to launch an upgraded and “completely indigenous” version of the tablet considering the “poor functionality and shoddy performance” of the existing device.

“A high-powered committee,” including officials from the Centre for Development of Advanced Computing, Department of Information Technology and the Indian Institute of Technology will supervise the upgrade, it said.
However, S.K. Marwah, additional director at the Department of IT said that he had “not received any information on the matter so far.”  Mr. Sibal’s office declined to comment.

Datawind disputed the veracity of the reported developments, saying the Indian media had “misquoted” the government.

“The statement quoting the honorable HRD Minister appears to be false and is a deliberate attempt by some negative elements to stall the ambitious project,” Datawind’s Chief Executive Officer Suneet Tuli told India Real Time in an email. Mr. Tuli added that the ministry has not “officially or unofficially” restricted the company from participating in forthcoming tenders for the low-cost tablet.

Last year, Datawind Ltd. won a contract to supply an initial batch of one million tablets to the Indian government. However, only 10,000 units have been shipped since October, raising concerns about the firm’s ability to deliver.  In January, the Indian media alleged that the low-cost project may be shelved altogether after Datawind was criticized for the alleged underperformance of “Ubislate 7,” the commercial version of the Android-based Aakash tablet.

As the controversy continues, some experts are coming to Datawind’s defense, saying that it would be tough for any other manufacturer to do any better, given how little money the tablet costs.

“It is unfair to expect a $50 tablet to deliver the same output as a $500 one,” technology expert Amit Agarwal said, noting consumer complaints about the tablet’s battery, slow speed and touch screen in comparison to high-end tablets. (Mr. Agarwal is a weekly technology columnist for India Real Time.)

Roping in a different vendor is unlikely to change the scenario, he added. The real issue, he argued, is not the manufacturer but “unfair comparisons” which put the device in bad light.

You can follow India Real Time on Twitter @indiarealtime.