Village Phone

Village Phone is a microfranchise approach that allows virtually any microfinance institution (MFI) or other organization to directly and independently develop a Village Phone product for their clients.
Microfinance clients can then take out a loan to purchase a Village Phone kit through their microfinance institution, or other organization, which will be repaid with proceeds from the business. These grassroots entrepreneurs, Village Phone Operators, then rent the use of the phone on a per-call basis providing both affordable telecommunications access in their community while earning enough to repay their loan and raise their level of income. Once they have paid back the loan, the Village Phone business kit is theirs to keep and to continue their business.
In many countries, telecommunications companies have not defined a public access strategy for rural markets. In this case, Village Phone allows an MFI, or other organization, to bring mobile communication services and new business opportunities to communities that may have been overlooked by traditional telecommunications access. Village Phone benefits all parties involved:- Village Phone Operators are given a unique opportunity to earn a new source of income that can complement an existing business. In addition, many of the Village Phone Operators are female, helping to increase the status of women in the community.- Community members no longer have to travel to make a phone call and can stay in touch with family and friends and increase their productivity.- The microfinance institution, or other organization providing loans for the Village Phone business kit, gains revenue from loan interest and potentially from airtime sales and helps set into place a network of phones that can be used as a platform for future innovation.- Finally, the telecom operator is able to reach a new market through a channel not previously utilized.