Connecting Bangladeshi Villages
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Transcript of Connecting Bangladeshi Villages
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Connecting
Bangladeshi Villages
Iqbal Z. Quadir, March 2003
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Connectivity is productivity
ITU research:
Adam Smith: Specialization Productivity
Specialization needs dependability
Dependability needs connectivity
Connectivity Dependability Specialization Productivity
Connectivity Productivity
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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 waiting
period Most phones were analog and did not work
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A part of the increased productivity could be channeled to pay for the service.
A business opportunity
The government is not building the necessary infrastructures.
A business needs to be
(and can be) created
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Myths, facts and solutions
Myths Facts Solutions Lacking buying-power, the poor provide no market.
Production tools create buying power.
Value (if higher than costs) can get people ahead.
Initial individual buying power may be too low
Shared-access reduces costs for everyone.
Community is the customer.
Meet primary needs first
A rise in income helps people meet primary needs.
Ownership empowers.
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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.
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Milk
Money
MoneyMoney
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Service
Money
MoneyMoney
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Mobilizing resources: 1993 - 1999
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Current coverage of GrameenPhone
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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
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Growth of Village Phones
0
2000
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12000
14000
16000
18000
20000
Dec-97
Jun-98
Dec-98
Jun-99
Dec-99
Jun-00
Dec-00
Jun-01
Dec-01
Jun-02
Dec-02
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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
Efficiency and effectiveness
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Meet real needs
Serve Real Markets
Build Real Businesses
Conclusion