MTN Uganda has launched a project which, it is hoped, will extend telecommunications access to rural villages across Uganda and lead to job creation in the region.
MTN villagePhone is based on a successful similar project, the Grameen Village Phone Programme, which was started in Bangladesh. The new project is a joint venture between MTN Uganda and Grameen Foundation USA.
The villagePhone concept is operated in partnership with micro-finance institutions, allowing potential village phone operators to take a "micro-loan" of as little as $230 - which is to be repaid over a period of up to 12 months - for the MTN villagePhone equipment.
In addition to the antenna, the equipment package also includes a car battery or solar power panel, a wireless handset, a user manual, and a fixed-line dedicated SIM card that can be loaded with the prepaid airtime and requires no service fees.
"The villagePhone project is a sustainable initiative that aims to alleviate poverty and empower rural Ugandans through the provision of communications services," says Yvonne Muthien, group executive of corporate affairs at MTN.
"The project will be instrumental in increasing local economic activity and business opportunities through the creation of entrepreneurs and small enterprises."
In Uganda, with a population of around 24 million, of which 86% lives rurally, the waiting list for access to a fixed-line telephone is over three-and-a-half years. The estimated teledensity is 2% to 3%, with the majority of these telephones concentrated in urban areas.
"Uganda is a poverty-stricken nation where the average villager travels up to 2km to make a call and is also charged a considerable rate per minute," says Muthien.
"Through this project, MTN is aiming to provide its communications services where no such viable, affordable or accessible alternatives exist. The goal is to establish 5 000 new MTN villagePhone micro-enterprises, thus bringing communications to millions of rural villagers."
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