Grameen Foundation and Nokia Launch Village Phone Direct

[Nikos Kartalis]

Building on the success of its Village Phone replication program, Grameen Foundation today announced a new initiative, Village Phone Direct. Village Phone Direct uses the existing mobile operator's network and allows microfinance institutions (MFIs) to directly implement the program, define the local marketing strategy, and control all aspects of implementation.

"We developed Village Phone Direct in response to requests from microfinance institutions," said David Keogh, Director of Village Technology at Grameen Foundation's Technology Center. "It allows virtually any MFI to directly offer mobile communication services for their communities." Pilots for Village Phone Direct are currently planned in four countries: India, Haiti, Angola and Pakistan.

Grameen Foundation, together with local microfinance institutions and local operators, first launched the Village Phone project in 2003 in Uganda. In 2005, Nokia and Grameen Foundation started an initiative to expand the program and create new small businesses and affordable access in rural communities around the world.

Grameen Foundation has partnered with Nokia to enhance the existing program by making a "Village Phone Business Kit" available for purchase in emerging markets. This Business Kit includes a Nokia mobile phone, a booster antenna, a recharging solution and custom-designed cables to connect all the components. Microfinance clients can purchase this kit through their microfinance institution, taking out a loan which will be repaid with proceeds from the business. The client then becomes a Village Phone Operator and rents the use of the phone on a per-call basis to people in their community earning revenues from the first call onwards. The Village Phone Direct is a microfranchise model that creates a win-win opportunity for both the microfinance institution and the micro-entrepreneur with a replicable, sustainable business that will stimulate community development.

Antonio Torres, Director of Business Development and Industry Marketing at Nokia's Entry Business Unit, said "Nokia is proud of our continuous collaboration with Grameen Foundation. The Village Phone Project is a sustainable way to extend the socio-economic benefits derived from access to mobile communications to yet untapped communities. We regard universal access as much more than an industry goal - for us it is a responsibility."