Village Phone: Bringing Mobile Communications to Rural Areas
From Shareideas
The Village Phone program, created by the Grameen Foundation, enables grassroots entrepreneurs to take out loans to purchase mobile phones. They then rent out airtime to local villagers, thereby boosting their incomes and providing a much needed service.
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“Running our Village Phone, I’ve saved enough money to buy a cow and support my family,” says Village Phone Operator Josephine Namala in Uganda. “Local farmers can now call the markets to ensure they get the best prices for their crops.”
Through the Village Phone program, established by the Grameen Foundation, and based on the pioneering work of Grameen Telecom in Bangladesh, people in poor, rural communities take out loans to purchase mobile phones. These grassroots entrepreneurs, Village Phone operators, then rent the use of the phone on a per-call basis, providing affordable telecommunications access in their community, while earning enough to repay their loan and raise their level of income.
As a result, the entire village benefits. By making a phone call, a small producer can check on the market price of goods and better negotiate a price for their goods with middlemen. Village phone operators typically repay their loans within six months, using revenue from operating the Village Phone. Extra income earned from their business can, for example, secure their children’s education and buy a house for their family.
Village Phone has become recognized as a solid business model for reaching rural populations. It is also acknowledged as a sustainable development tool by governments and development agencies such as the World Bank, the United Nations, the International Finance Corporation, and the US Agency for International Development. Village Phone is currently operating in the Philippines, Rwanda, and Uganda and pilot programs are taking place in Cameroon and Cambodia.
How it was done
A microfinance loan allows each Village Phone operator to purchase a business kit. This comprises a mobile handset, a SIM card preloaded with prepaid airtime credit, a charging solution, an external antenna set (including a booster antenna, a coupler, a cable and marketing materials).
Technology used
Mobile phone
External antenna
