Two Thousand Rural GSM Payphones in Uganda

MTN Uganda has announced the provision of its 2000th villagePhone operator. MTN villagePhone extends telecommunications access to rural villages across Uganda in partnership with microfinance institutions by creating opportunities for individuals living in impoverished rural areas to become "Village Phone Operators". Village Phone Operators take a "micro-loan" for the equipment for as little as US$230 to be repaid over a period of up to 12 months.

MTN village Phone General Manager, Richard Mwami, attributes the growth to a number of factors. "Through village Phone, we offer a unique telecommunication solution. It is an affordable product and customers consider it real value for money. In addition, we have established partnerships with Micro finance institutions which have formed a strong basis for the infiltration of the village Phone in rural communities. Also at the end of the day, operators realize a reasonable profit margin from running a village Phone. All these factors have together played a role in its successful rollout "

Village Phone businesses can be established in areas where electricity is unavailable and in areas where the MTN network can only be accessed with a booster antenna. In addition to the antenna, the equipment package also includes a car battery or solar power panel, a wireless handset, a VPO user manual, and a fixed line dedicated simcard that can be loaded with the prepaid airtime and requires no service fee.

MTN village Phone was established in partnership with Grameen Foundation USA. It is the first successful replication model after Bangladesh which pioneered the village Phone program. MTN village Phone was launched in November 2003.

One of the greatest success stories in international development has been the Grameen Village Phone program in Bangladesh (an initiative of Grameen Bank, Grameen Phone, and Grameen Telecom). The typical Village Phone Operator earns an income three times the national average. Over 37,000 village phone operators have established a clear path out of the cycle of poverty.

Many poor rural individuals have demonstrated strong business acumen, as well as the ability to pay back small loans. Over 98% of the loans are fully repaid.

What's more, the service to the community is invaluable. Business owners in Bangladesh use the village phone to receive market information to better negotiate prices for the goods they produce. Entrepreneurs use the technology to identify new business opportunities. Others use it to stay in touch with family members and friends who have left the village. All save the expense of traveling great distances to contact others outside of their immediate community.

 

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Posted to the site on 23rd August 2005