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Microfinance:is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services. Two types of Microfinance: Savings-led (Community/household based) Credits-led (GrameenBank)
Introduce a new income generating source for poor
Bring the potential of the Information Revolution to the doorsteps of villagers;
Introduce telecommunications as a new weapon against poverty.
Very good record of repayment of Grameen Bank loans;
Good business, preferably a village grocery store, and have the spare time
to function as the VP operator.
Literate or at least she must have children who can read and write;
Residence should be near the centre of the village.
Village Phone Launched Date: 26 March, 1997, the same day commercial service of Grameenphone was launched Village Phone Program is a noble effort by tri party (GP-GTC-GB) to eliminate poverty by providing self-employment opportunity Currently 530K (approx.) Village Phone Operators are doing business all over rural Bangladesh Replicated in a number of countries including Uganda and Rwanda. Received 'GSMA in the Community Award' in 2000 Received 'Commonwealth Innovation Award' in 2003 & "Petersburg Prize" awarded by the Gateway Foundation in 2005.
Village Phone (contd.) The Village Phone (VP) initiative has made tremendous social and economic impact in the rural areas of Bangladesh, creating a 'substantial consumer surplus' for the users. VP program has created an income-earning opportunity for the VP operators, mostly poor women and borrower members of GB, who are now able to make their opinions count. They are popularly known as VPO Only GB members can get the VP connection at very lucrative product & price plan. VP is mainly available at rural areas where most of the people don’t own personal handset & connection (65,000 villages) The profit for VPO is the difference between end customer tariff & operator’s tariff This profit enables them to meet not only basic need like food, shelter, health etc. but also entertainment need
How it works.. Selection, Subscription and Training Billing-GP prepares a monthly bill at the bulk airtime rate for VP for total airtime used by all VPs.GP sent the bills to GB each month. GTC disburse the bills to all VP operators and collect the bills and pay back. . This process provides an interesting solution to the problem of revenue collection that sometimes plagues the operators of rural telephone systems. After Sales Support-GTC has established Unit Offices to cover the VP operation in the field. Purchase & Payment-The basic VP package costs 10,000 Taka, or approx.$140. VP operator pays for the phone through weekly loan payment installments of 146 Taka or approx $2. These payments are made through the local GB branch. Electricity-Widespread access to electricity in rural Bangladesh enables the phone operator to recharge batteries or power the phone directly from an electrical outlet. Solar power sources are provided in some Village Phones in non-electrified villages which produces 16-12volt. Call Charges & Profit-GP charges GT Tk.1 ($.0138) flat rate, whereas urban GP subscribers pay Tk.up to tk 4($.055)
Contribution to economy: Monthly ARPU is BDT 270 = $3.75 Monthly Revenue generating: 135 million Air time (incoming/outgoing for Local/NWD/ISD)Fax Remittance (Local/International) Internet Packages Information FlexiLoad Collect bills (Water/Electricity/Gas) What they Sell Net Income: On average, the VPO earns min a net profit of 580 tk per week =$8.05 VPO earns an income of 27,840 tk =$387 per year GDP per capita $641 (2010 est), GDP growth 5.5% (2010 est.) http://www.thedailystar.net/newDesign/news-details.php?nid=140346