ICTs and Rural Development: Success Stories

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ICTs and Rural Development Success Stories

• Jacques Panchard, Research Assistant, EPFL

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Grameen Phone et Grameen Bank (microcredit)

• Problem lack of infrastructure
• Credit control
• Billing
• Payments
• Distribution Network
• ....

Goal rural connectivity
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Grameen Bank - microcredit
community
Grameen Bank
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Grameen Phone
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Grameen Telecom
community
Grameen Bank
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Grameen Phone shared access
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Grameen Telecom/ Grameen Phone
Solution
Local entrepreneurs
Lease phones to local operators
Use cheap local service providers
Pb. Affordability. Cell phones and subscriptions
are too expensive!
Village inhabitants
Deploy and operate cellular network (GSM)
Sell communication service in rural areas
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Business Model Grameen Phone/Telecom
Relationship
Partnership
Transactional long-term relation- ship based
on Phone subscriptions and communication
time credit down-payments (entrepreneurs)
Grameen Bank (Microcredit organism)
Value Proposition
Primary Sell phone conversation time to people
living in rural areas Secondary Offering
villagers the possibility to make and receive
phone calls Intermediate Offering the capacity
for local entrepreneurs to sell phone time to
other villagers
Capability

• Provide extensive network coverage
• Provide good value service
• Find entrepreneurs

Rural population, via rural entrepreneurs
Customers
Value Configuration

• Split into 2 companies
• GP (for profit)
• Install and maintain GSM infrastructure
• Provide and maintain service (GP)
• GT (non for profit)
• Lease phones to local entrepreneurs

Channel
Phone Service Provider Micro-credit institution
already active in the village
Revenue
Cost
Profit
Investment in infrastructure (cellular
network) Investment in phones Marketing of the
proposed service

• Subscription and communication time
• Revenue from phone sales

?
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N-Logue Modèle de connectivité rurale
Local Service Provider
Village Kiosks
corDECT wireless system

• Facts
• 500 to a 1000 customers
• Radius of 25 km (around 2000 sq km)
• Internet connectivity to small towns or villages

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Swayam Krishi Sangam (SKS) Handheld/Smart Card
Project
Micro-credits
The organization has set an ambitious target of
reaching 100,000 women in the 100 poorest
districts in India, to be fulfilled in 5 years.
The Handheld/Smart Card design is aimed at
lowering SKS's cost of operation. The financial
sustainability of microfinance institutions
(MFIs) like SKS has continuously been under
strain
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Jhai Foundation Education IT village
initiative
A Lao-language version of the free, Linux-based
KDE graphical desktop and Lao-language office
tools Villagers in five villages and their
surroundings will use this Jhai Communications
Center to make telephone calls within Lao PDR and
internationally (using voice-over-Internet
technologies), and for the activities, such as
accounting, letter writing, email, that are so
important for their start-up enterprises.