Grameen Foundation Unveils Online Center to Expand Benefits of Telecommunications

Details: Michael Schwartz; Category: Consumer Ecosystems; 01 June 2007; 8870 views

Grameen Foundation recently announced a new online assistance center to help microfinance institutions bring the benefits of telecommunications to poor communities around the world...

Grameen Foundation recently announced a new online assistance center to help microfinance institutions (MFIs) bring the benefits of telecommunications to poor communities around the world.

The Village Phone Direct Assistance Centre was launched in Nairobi, Kenya during the International Telecommunications Union's 'Public & Private Sectors Partnership Forum' (PPPF-Africa 2007) conference. It features a how-to manual, a message board, customizable templates and other information that will help MFIs work independently with local telecommunications providers to develop Village Phone Direct programs for their clients. A Village Phone Direct program is already operating in the Philippines.

Village Phone Direct builds on the success of the traditional Village Phone program pioneered by Grameen Telecom (part of the Grameen Family of companies along with Grameen Bank) which has created more than 293,000 'Village Phone Operators' (VPOs) across Bangladesh. After establishing successful national Village Phone Replication operations in Uganda and Rwanda where there are now close to 10000 VPOs, Grameen Foundation developed Village Phone Direct in response to requests from MFIs that were eager to start programs in their own communities without waiting for the national program.

"Village Phone Direct gives microfinance institutions greater flexibility and control in developing these turnkey cell phone business opportunities for their clients by allowing them to drive the initiative," said Peter Bladin, director of Grameen Foundation's Technology Center. "With this new online assistance center, they will have the tools they need to start immediately."

The Village Phone concept is simple and straightforward. Microfinance clients use micro-loans to purchase a cell phone starter kit and service plan from their local MFI and then retail the 'minutes' to others in the community. In regions where the nearest phone is often more than 10 miles away, these VPOs quickly become an economic and social lifeline. The income from the phone also enables the VPO to repay the original loan and establish a viable business for their family.

Negros Women for Tomorrow Foundation (NWTF), an MFI based in the Philippines has already adopted the program and is gearing up to create 500 new businesses throughout the region it serves. "Village Phone Direct is a great way for NWTF to provide better opportunities not only to its clients, but also local communities and thus contribute towards economic growth," said Raymond Serios, manager of NWTF's Village Phone Direct program.

The Village Phone Direct, initiative creates new opportunities for the wireless industry to work with microfinance institutions to extend communications services to poor and rural communities around the world. This initiative taps into the growing trend in the wireless industry to serve populations that had been previously considered unprofitable markets. In many of these areas, microfinance institutions already have established distribution channels for delivering services which makes them good partners for telecom operators. Grameen Foundation believes that by working with Village Phone Direct, telecom operators will not only enhance their bottom line, but will also be helping in economic development of these poor communities.

About Grameen Foundation

Grameen Foundation is a global non-profit organization that combines microfinance, technology, and innovation to empower the world's poorest people to escape poverty. It has established a global network of partners in 23 countries that has impacted an estimated 16 million lives in Asia, Africa, the Americas, and the Middle East. Grameen Foundation was founded by Alex Counts, who began his work in microfinance with Grameen Bank founder, and recent Nobel Peace Prize recipient, Dr. Muhammad Yunus. Dr. Yunus is a founding and current member of Grameen Foundation's board of directors.

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