Is the Aakash Dream Over?

Just five months back, the technology followers were gung-ho about the launch of the worlds cheapest computing device, Aakash, unveiled by the Government of India. (See 2011's Top Device Trends, Tablets Get Hotter, Competition Intense and What Went Well in 2011.)

But the recent turn of events suggest that poor planning and commercial motivations might kill the revolutionary tablet device.

If industry reports are to be believed, the Government may roll back its plans to support DataWind, the Canadian manufacturer of Aakash, in terms of providing the device at a subsidized price. While Datawind is alleged to have violated a principal clause in the agreement, the reported poor performance and the inferior quality of Aakash has also let the Government down. (Read Aakash Loses Government Edge.)

According to several reports, DataWind has violated the contract by launching the commercial edition of Aakash well before it could supply the agreed units (100,000) to the Government. While the company was supposed to supply the first 100,000 units to the Government, it launched the commercial edition named UbiSlate 7, without fulfilling the obligation. The company has thus far only provided 30,000 units to the Government, which is now reportedly seeking a new partner.

More troubles
So far, barring the price, the inaugural edition of Aakash has failed to charm the customers who have used it. especially in terms of quality and technology. Moreover, the Indian Institute of Technology (IIT), Rajasthan, which is responsible for procuring the device at a subsidized price, has identified several loopholes in the first lot.

The IIT has asked DataWind to upgrade the existing version with new test specifications before supplying the remaining tranche of 70,000 devices. However, it seems this is only adding further problems. According to DataWind, the new specifications will make the device as costly as US$2,000 (INR 100,475), thus killing the very purpose of supplying a cost-effective device.

What's more confusing is the role of a premier institution such as IIT in this entire affair. If the device was well behind with its standard specifications, then how come it was cleared by the testing labs of IIT? Also, if the Government was really keen on the timely delivery of the devices, then why did it only select a single vendor to manufacture the device in the first place?

Well, to many observers, this entire episode is going to benefit Reliance Industries Ltd. (RIL), which is in the process of launching its 4G services this year. According to a report in India Today, the idea of Aakash has already been hijacked by RIL and there is a strong possibility of RIL collaborating with Datawind to launch a commercial tablet for less than INR 5,000 ($99.50) commercially. (See RIL's LTE Rumor Mill, IndiaWatch: RIL Plans LTE Launch Early Next Year and Rumor: RIL Strikes LTE Rollout Deal.)

While in India it's not unusual to see an ambitious government project failing, it would be really unfortunate if such a prestigious project, with millions of hopes associated with it, was shelved due to poor foresight. Let's keep our fingers crossed for a positive outcome!

Jatinder Singh, Principal Correspondent, Light Reading India