Grameen Bank's Village Phone Initiative: Connecting Rural Bangladesh to the World
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Case Details:
Case Code : ITSY054
Case Length : 14 Pages
Period : 1997-2006
Pub Date : 2006
Teaching Note :Not Available
Organization : Grameen Bank, Grameen Telecom, Grameen Phone
Industry : Telecom and Broadband
Countries : Bangladesh
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Introduction Contd...
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During the mid-1990s, Nazia and her husband, a daily laborer,
were facing severe financial problems. Then Nazia joined Grameen Bank4,
which provided small loans mainly to poor women for income generating
activities. She obtained a loan with which she started a small shop.
After
repaying the loan, she received an additional loan, with which she expanded her
business and built a new house. Nazia paid her installments regularly and when
Grameen Bank introduced the Village Phone scheme, she was given a loan of around
Taka 25,000 to buy a mobile phone. She repaid the loan in installments of Taka
400 every week.
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The Village Phone scheme, launched by Grameen
Bank in 1997, has proved to be a godsend for villagers in
Bangladesh.
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For instance, Abdul Karim (Karim),
who ran a poultry farm in a village near Dhaka, used the
services of the Village Phone to order poultry feed and
other supplies required at his farm.
Prior to the availability of this service, he had to
travel to Dhaka to get the supplies. Karim also used the
Village Phone to sell his produce.
Earlier, middlemen would offer him lower than the actual
market price for eggs and other poultry products. Karim
now checked the market rate on the phone to ensure that
middlemen did not cheat him by quoting lower prices... |
Excerpts >>
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