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Connecting Bangladeshi Villages

Iqbal Z. Quadir, March 2003. Connecting Bangladeshi Villages. Connectivity is productivity. ITU research:. Adam Smith: Specialization Productivity Specialization needs dependability Dependability needs connectivity

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Connecting Bangladeshi Villages

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  1. Iqbal Z. Quadir, March 2003 Connecting Bangladeshi Villages

  2. Connectivity is productivity ITU research: Adam Smith: Specialization Productivity Specialization needs dependability Dependability needs connectivity Connectivity Dependability Specialization Productivity Connectivity Productivity

  3. Telecommunications in Bangladesh as of 1993 • Only 2 phones per 1,000 people • Virtually none in rural areas, leaving 100 million unserved • $500 connection fee — and 5-10 years waitingperiod • Most phones were analog and did not work

  4. A business opportunity The government is not building the necessary infrastructures. A business needs to be (and can be) created A part of the increased productivity could be channeled to pay for the service.

  5. Myths, facts and solutions

  6. The real problem : A lack of other infrastructures • Not Enough • Records for credit checks. • Roads for Repairman. • Contact points for customer service. • Banks to collect bills. • Schools for children of workers. • Grameen Bank • 1138 Branches. • 12,801 employees. • 2.3 mill. borrowers. • 39,172 villages covered. • $33 mill. lent monthly. • 94% borrowers female.

  7. Money Milk Money Money

  8. Money Service Money Money

  9. Mobilizing resources: 1993 - 1999

  10. Current coverage of GrameenPhone

  11. Summary results of GrameenPhone • $250 million already invested • 2002 net income (profit after taxes) is expected to be $44 million • Largest telephone company in Bangladesh with 800,000 urban subscribers • 25,000 villages served. 40 million people gained access to telephones in rural areas • Revenues $100/month per village phone • Profit of $2/day/phone, more than twice the per capita income

  12. Growth of Village Phones

  13. Efficiency and effectiveness • Increasing incomes • generating profits for local entrepreneurs • farmers can get market information and better prices for crops • deals are being made over the phone • Improving welfare • ability to call a doctor • can connect with urban or overseas relatives • substitutes for costly trip into capital city

  14. Conclusion • Meet real needs • Serve Real Markets • Build Real Businesses

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