GrameenPhone

Cellular Goes Rural

Over 75 percent of the world’s population lives in villages and majority of them have never made a telephone call. Cellular operators particularly in the developing world are seriously looking at the rural market—the ultimate segment within mass-market.

 "GrameenPhone" might have been born in Bangladesh, but soon it is likely to join the international cellular jargon. Rural cellular marketing, by Vodaphone in South Africa, where many villagers made their first-ever call using pre-paid, was recently rewarded by GSM MoU Association at GSM World Congress in Cannes. "GrameenPhone", the unique cellular operator from Bangladesh, also made an impressive presentation at Cannes. Indian operators too are seriously looking at the rural pockets where despite impressive line up of consumer appliances like colour TVs, frost-free refrigerators, scooters, and even marutis, many people are yet to make that first call. Spread over vast areas in UP, Bihar, and Orissa, Ushafone cellular service now covers about 500 villages, modestly moving towards the litmus test of mass-marketing. Who are these rural early-adopters!

Take for instance, Radha, the veiled Pradhan of the village called Mureshi near Aligarh in UP. She may be the Pradhan but, keeping in with the tradition of the place, she has never visited a PCO. It was unthinkable to make a telephone call to her married daughter in a distant place as she has so far not succeeded in getting a telephone installed at her home. Now a proud possessor of a cellphone, she can talk to her daughter in privacy even from behind the veil. Also she knows that her daughter can reach her in the moments of need. Life was never so emotionally secure!

It was a nightmare for Shiv Nandan of village Nayee Basti near Bulandshahr to transport gur (unrefined sugar-cakes) to the mandi (the wholesale market) only to find unfavourable prices. After taking to cellular, he now keeps a watch on the market-price trends and is able to close the right deal before despatching his gur stock to the mandi. Life had never been so profitable!

Veerpal, a farmer with about 100 acres of land, in village Amarpur, also, near Bulandshahr, when given a demo of cellphone thought it was God-sent and subscribed it instantaneously. Now, he does not have to rush to the city everytime he needs even the smallest help whether for repair of his farm machines or tractors. Now he orders around over his cellphone. The time had never been managed so well!

In Tazpur and Amarpur, the two villages on Bulandshahr-Meerut Road, more than 80 percent of the men folk, covering almost all families, are working in Middle East and they could not call their wives or families as there was no PCO in these villages, the nearest one being 30 kms away. Though there are only few cellular subscribers they believe in sharing the cellphone and the bill is split among individual receivers of calls. No more long wait for the postman: the letters are loosing importance as they sometimes lost meaning by the time they were received.

There have been many other noticeable changes in the lives of these rural folk since the arrival of cellphone. The election activity had a different pitch this time with many of the village pradhans and other party workers subscribing to the cellular: for instance, the canvassing and counting could be monitored closely.

There are many branches of banks and other essential services in the rural areas which are eager to subscribe to the cellular service. The branch manager of State Bank of India of village Bilsun feels that the bank started functioning far more efficiently with the arrival of the cellphone. A sure tool for better customer service!

Tool for Growth

Many people have been eager to meet Chacha Ramdin. But Chacha always felt that there were all these heroes from the real life who need attention and empowerment through the economic tool called "cellular". 

GrameenPhone

A unique Bangladesh operator focusing on providing cellular to rural people, primarily women, to create employment opportunities and empower them socially and politically.

  • about 20000 subscribers in January 1998 (enrollment constrained only by interconnection capacity)
  • using nation-wide fibre optic backbone of Railways (leased for 20 years)

Benefiting from the strengths of Grameen Bank:

  • specialized financial institution for rural areas
  • 2.1 million borrowers cum owners (poor people) with one share
  • 37,352 villages covered (55% of villages served)
  • $33 million lent monthly ($154 million saved by borrowers)
  • 97 percent loans (for cows, sewing machines to cellphones) recovered
  • 94 percent borrowers are women
  • loans without collateral

 

By Niraj K.Gupta, Voice and Data, April 1998.