e-commerce in Indian villages ?

Looks like Mr JhunJhunWala(IITM's EEE HOD) is thinking of connecting villages by Internet and providing farmers/rural ppl e-services. But what we forget is that they lack the basic amenities like electricity, housing & health services.

I am not sure whether even a municipal town like Madurai, has the capability to have a decent broadband connection to stream live images. Last time I had gone there, I had a hard time connecting to a dialup. But, looks like a nice small step for the long way ahead !