Grameen Bank's Village Phone Initiative: Connecting Rural Bangladesh to the World

Abstract:

The case discusses the Village phone project from Grameen Phone which changed the lives of millions of poor in Bangladesh by providing them mobile communication facilities. Grameen Phone, in association with Grameen Bank and Grameen Telecom had established a unique business proposition for the rural consumers in Bangladesh. Grameen Telecom explored the villages where mobile services could be provided and in association with the local branch of Grameen Bank, encouraged and educated credit worthy members to become village phone operators (VPOs).

The VPOs were given unsecured loans from Grameen Bank to purchase and operate mobile phones. Grameen Telecom bought a cellular phone subscription on the behalf of the members and provided connection, required hardware and the training about the use of mobile phone. The VPOs collected revenues from the users, who used the phone for making and receiving calls. The VPOs repaid the loan from the income they obtained through the phone. The case gives a detailed overview on the Village Phone project and examines the benefits reaped by the project's stakeholders.

Issues:

» Understand the operations of the Grameen Phone project.

» Evaluate the support required for the use of technology in development projects in rural areas.

» Examine the benefits of information and communications technologies (ICTs) for rural masses.

» Analyze the viability of private sector investment in projects like Grameen Phone in under-developed countries.

Contents:

Keywords:

Grameen Bank, Grameen Telecom, Grameen Phone, IT Projects, ICTs for Poor, Digital Divide, Village Phone Operator, Global System for Mobile Communication (GSM), Microfinance Schemes, Voice over Internet Protocol, Millennium Development Goals

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