Background Information on Village Phone

Program Related Questions 

Questions About the Manual

How Can I Contribute?

Background Information on Village Phone 

What is Village Phone? 

Village Phone is an innovative, 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.

By applying technology in this pioneering way, MFIs provide a valuable, sustainable business opportunity for their clients to assist them in becoming more self sufficient.

Why is Village Phone necessary?  

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.

Is Village Phone designed for urban or rural markets? 

The equipment used in Village Phone will operate in either an urban or rural market. However, we strongly encourage a focus on rural markets. In urban areas, there is usually significant competition for public telecommunication services, making the business more challenging for the Village Phone Operator. In rural areas, especially those where a signal can only be received using the external antenna in the Village Phone Equipment Kit, the business model will be much more favorable and sustainable. 

Program Related Questions

I want to start a Village Phone project - where do I begin? 

The first step is to download and read the Village Phone Direct Manual. This document has been created by the experienced Village Phone team at Grameen Foundation's Technology Center to help you assess the viability of Village Phone for your organization, clients, and particular environment. It will guide you through the process of establishing Village Phone as a successful product in your portfolio. 

As a brief guide, the basics steps outlined in the manual are: 

Step 1: Get Institutional Commitment and Search for Partners

Step 2:  Assess Demand and Survey the Environment

Step 3:  Create a Business and Financial Model

Step 4:  Select Equipment and Define Sourcing

Step 5:  Select Operators

Step 6: Develop an Operating Manual and Training Curriculum

Step 7: Run a Pilot Program

Steps 8 -12: Deployment and Ongoing Operations 

What equipment do I need for Village Phone and where can I get the kit?  

The necessary equipment can be procured in several different ways. Initially you must assess what equipment is right for your area. The price of the kit ranges from $50 to $300, depending on local pricing and taxes and your organization’s requirements. The complete kit consists of a mobile phone; earpiece; SIM card or telecommunication access card; airtime; antenna, cables, and coupler; phone battery solution; and marketing signage and branding. Some programs have started using desk set wireless phones, and so the components may vary slightly. 

Most of this equipment can be procured locally, however any elements of the kit that are not readily available from regional vendors will have to be sourced from an overseas supplier. Please see the How to Procure the Village Phone Kit (Adobe pdf, 0.2Mb) for exact details.

Before the equipment is purchased, it is important to have conducted appropriate surveys and a business plan to determine which technology (GSM or CDMA) is used in your area and the operating frequency of the equipment needed. You will also need to know which products are most applicable and in what quantities. For example, an antenna system may not be required if operators are relatively close to a base station and a charging solution may be required if operators lack easy access to electricity. It is also worth bearing in mind that if the area you are working in does not run on GSM 900/1800 Mhz, an alternative set of equipment will be needed. It is important to tailor this generic equipment list to suit your particular Village Phone program.

I do not represent a microfinance institution, but am still interested in this initiative - can you help me?  

Anyone can drive a Village Phone initiative! We have seen MFIs, non-profit organizations, individual consultants, and for-profit organizations all start Village Phone initiatives. The material we provide through the Assistance Center is relevant to various populations. Our focus, as far as additional support, is to assist organizations actively working to reach the poorest members of their communities. Your job is to help these individuals create successful businesses that provide their community with access to reliable and affordable telecommunication services. The first step for all interested parties is to download and review the Village Phone Direct Manual as well as the appropriate Hands-on Tools. Next, write up your business plan and send it to us to review. We are happy to provide input to all different types of organizations. Please email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it with any questions. 

Many people have phones in the area my organization serves - can I still do a Village Phone project? 

Yes, it is still possible to do a Village Phone project. Even if it seems like many people have their own phones, there are still many who live in poorer communities who do not have the money or the interest in buying their own phone. Additionally, people often do own their own phone, but do not have enough money for airtime, and so become dependent upon the Village Phone Operator. You should first conduct a survey to assess demand for telecommunications and business viability for the program. Details on how to do this are contained in the Village Phone Direct Manual and a sample survey can be downloaded from the Hands-on Tools section of the website.

I would like to get a phone for my relative - can I do this through your program?  

The Village Phone initiative does not supply mobile phones or accessories; it is in place to provide a support structure and focal point for those wishing to start a Village Phone program. If your relative would like to start a Village Phone business, please get in contact with your local microfinance provider and ask them to start a Village Phone program. 

I cannot download a large document from my current connection - how can I access the manual?

If you cannot download the complete Village Phone Direct Manual from the website, try to download the abridged version that is available in English. This is significantly smaller in size as it does not include the appendices, which can be downloaded separately from the Hands-on Tools section of the website. If you are still unable to download the file, please contact the Village Phone Team at the Grameen Technology Center at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Can I get a copy of the manual in another language?

The Village Phone Direct Manual is now available in five languages - English, French, Spanish, Arabic, and Chinese. Please visit the manual page to find the appropriate language. 

How do I feature my Village Phone project on this website? 

If you would like to feature your Village Phone project on this website – and be an example to future programs – please contact the Grameen Technology Center with details of your project at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it . We encourage you to send us stories about your client’s success, helpful tips to share with other MFIs working to create Village Phone Direct projects, pictures of your Village Phone Operators at work, or any other interesting anecdotes. 

I have opinions about the material provided - how do I contribute?

We are always seeking ways to build upon the Village Phone model, realizing that it is a continual work in progress, adapting and changing as the program expands. If you have any comments or suggestions please contact the Grameen Technology Center at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , comment on individual Hands-on Tools that you have found helpful, and share your opinions on relevant topics in the Blog.