Transcript Connecting Bangladeshi Villages Iqbal Z. Quadir, March 2003

Connecting
Bangladeshi Villages
Iqbal Z. Quadir, March 2003
Connectivity is productivity
ITU research:
Adam Smith: Specialization
Productivity
Specialization needs dependability
Dependability needs connectivity
Connectivity
Connectivity
Dependability
Productivity
Specialization
Productivity
Telecommunications in Bangladesh as of 1993
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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
A business opportunity
The government is not
building the necessary
infrastructures.
A part of the increased
productivity could be channeled
to pay for the service.
A business
needs to be
(and can
be) created
Myths, facts and solutions
Myths
Lacking buyingpower, the poor
provide no market.
Facts
Solutions
Value (if higher than
Production tools
create buying power. costs) can get people
ahead.
Initial individual
Shared-access
buying power may reduces costs for
be too low
everyone.
Meet primary
needs first
Community is the
customer.
A rise in income helps Ownership
people meet primary empowers.
needs.
The real problem :
A lack of other infrastructures
Not Enough
Grameen Bank
•Records for credit checks.
• 1138 Branches.
•Roads for Repairman.
• 12,801 employees.
•Contact points for customer service.
•Banks to collect bills.
•Schools for children of workers.
• 2.3 mill. borrowers.
• 39,172 villages covered.
• $33 mill. lent monthly.
• 94% borrowers female.
Money
Milk
Money
Money
Money
Service
Money
Money
Mobilizing resources: 1993 - 1999
Current coverage of GrameenPhone
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
Growth of Village Phones
20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec97
98
98
99
99
00
00
01
01
02
02
Efficiency and effectiveness
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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
Conclusion
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Meet real needs
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Serve Real Markets

Build Real Businesses