Laptop program is a big hit with children in Peru

ARAHUAY, Peru — Doubts about whether poor, rural children really can benefit from quirky little computers evaporate as quickly as the morning dew in this hilltop Andean village, where 50 primary school children got machines from the One Laptop Per Child project six months ago.

These offspring of peasant families whose monthly earnings rarely exceed the cost of one of the $188 laptops — people who can ill afford pencil and paper much less books — can't get enough of their "XO" laptops.

At breakfast, they're already powering up the combination library/videocam/audio recorder/music maker/drawing kits. At night, they're dozing off in front of them — if they've managed to keep older siblings from waylaying the coveted machines.

"It's really the kind of conditions that we designed for," Walter Bender, president of the Massachusetts Institute of Technology spinoff, said of this agrarian backwater up a precarious dirt road.

Founded in 2005 by former MIT Media Lab director Nicholas Negroponte, the One Laptop program has retreated from early boasts that developing-world governments would snap up millions of the pint-sized laptops at $100 each.

In a backhanded tribute, One Laptop now faces homegrown competitors everywhere from Brazil to India — and a full-court press from Intel Corp.'s more power-hungry Classmate.

But no competitor approaches the XO in innovation. It is hard drive-free, runs on the Linux operating system and stretches wireless networks with "mesh" technology that lets each computer in a village relay data to the others.

Mass production began last month and Negroponte, brother of U.S. Deputy Secretary of State John Negroponte, says he expects at least 1.5 million machines to be sold by next November. Even that would be far less than Negroponte originally envisioned. The higher-than-initially-advertised price and a lack of the Windows operating system, still being tested for the XO, have dissuaded many potential government buyers.

Peru made the single biggest order to date — more than 272,000 machines — in its quest to turn around a primary education system that the World Economic Forum recently ranked last among 131 countries surveyed. Uruguay was the No. 2 buyer of the laptops, inking a contract for 100,000.