Case Study: Grameenphone, CICs, Bangladesh

Grameenphone, the largest mobile operator in Bangladesh, together with the Development Fund has rolled out GSM connected internet to every sub-district in Bangladesh, through over 560 Community Information Centres (CICs). In 2005 Grameenphone invested approximately $US300M in a network upgrade. By the end of that year, 90% of the population had mobile phone coverage, 80% with EDGE and the remainder with GPRS. In 2006, the Grameenphone Village Phone concept was adapted, in conjunction with the Development Fund, to include more relevant data services for rural villagers. The pilot used an Operator/Entrepreneur business model with microfinance support and a local distributor. In order to compare cost, performance and supportability, different technical concepts were piloted in 16 CICs across Bangladesh. Each CIC contained between one and eight internet terminals with EDGE modems. The CICs were designed to be commercially viable and sustainable, so that local entrepreneurs could buy a 'Business in a Box' with a low-cost loan from Grameen Bank.

Fizaz Ahmed is the CIC entrepreneur in Kapalia Bazar, Jessore. "The services have really improved the lives of the villagers, who previously would have had to travel around 35 kilometers to use the internet. Students can download their examination results. For a small fee of 25-35 taka (€0.4- €0.5), villagers can print out documents that used to take days or weeks to arrive by post, for example license and passport forms. They can keep in touch with relatives abroad by email. Farmers can enquire about agricultural issues and receive swift, informative replies from the authorities. For just 5 taka (€0.07), a farmer can obtain market prices for any agricultural commodity. Villagers can even access tips to keep themselves healthy! From 7am until 11pm, the CIC remains busy all day long. Teachers, doctors, students, housewives, farmers - all sections of the local community use the services. There's no doubt that GSM technology is making a real difference. Without the CIC, villagers would have been unable to enjoy the benefits such progressive change has brought to their life."

"I want to use our GPRS/ EDGE network to bring the benefits of the internet to people around Bangladesh, particularly in the rural areas, and thus help bridge the digital divide. There is no fibre optic cable or fixed-line network in the rural areas of the country. Thus, the only way of reaching those remote areas is through the cellular network. In order to ensure that this initiative is financially sustainable we will need to develop a business model that is profitable for all stakeholders including the individual entrepreneur, content providers, delivery partners and Grameenphone."

Erik Aas
Former CEO
Grameenphone

Visit the Grameenphone website