An Investigation of the Replicability of a Microfinance Approach to Extending Telecommunications Access to Marginal Customers

This study attempts to examine and document particular sets of solutions that have emerged from the extension of telecommunications access to marginal customers in Bangladesh, under the Grameen Village Phone Program.

The document provides the following details of the program:

• Access to telecommunications to over 45% of the villages in Bangladesh;
• Use of microfinance for villagers to purchase a mobile phone and a GrameenPhone connection;
• GrammenPhone's operation as a payphone, providing access to villagers at a charge.

The study looks at:

• The problem of access to telecommunications;
• Grameen's desire to:
  • Promote development and poverty alleviation through the use of Information and Communication technology (ICT);
  • Increase telecom access to the rural poor.
• The roles played by microfinance and infrastructure sharing in the success of the program;
• The possibility of replicating this model.

The study concludes that:

• Changes in ICT and markets have spurred different solutions to the access problem;
• Solutions do not necessarily stem from the desire to ensure access to all;
• Sometimes solutions are successful business models;
• Certain elements of this approach may still be useful;
• The Village Phone program in Uganda has drawn several key design elements from the original Bangladeshi model;
• The key to the sustainability of the model is that all stakeholders benefit from the program;
• The usefulness of the Grameen model depends on the context and should be adapted accordingly.