Village Phone Service Launches in Rural Indonesia

Bangladeshi Grameen Foundation, Indonesia's Bakrie Telecom and Qualcomm have launched the first Village Phone Program in Indonesia, branded as Uber ESIA, using 3G CDMA technology to provide affordable wireless telecommunications services for rural communities.

Grameen Foundation, Bakrie Telecom and Qualcomm will be working with local Indonesian microfinance institutions to enable microfinance clients to borrow the money needed to purchase a Village Phone "business in a box," which consists of a wireless 3G CDMA-based phone and charger, marketing materials, tariff posters, business cards and training materials. The Village Phone Operators (VPOs) will operate their businesses in rural villages where telecommunications services did not previously exist, renting the use of the phone within their communities on a per-call basis.

"Building on the visionary leadership of Grameen Telecom, Grameen Foundation is committed to ensuring that the rural poor are not left behind in this rapidly changing information and communications technology environment," said Alex Counts, president and CEO of Grameen Foundation. "Microfinance helps to put technology within financial reach of the poor and we are pleased to work with Qualcomm and Bakrie Telecom to help Indonesia's rural microentrepreneurs build self-sustaining businesses that also enhance the socio-economic development of their wider communities."

The VPOs provide affordable rates to their customers, while earning enough to repay their loan and earn a profit that will allow them to make investments in their family's health, nutrition and education, and in other business ventures. The project aims to empower underserved communities in rural Indonesia with mobile communications using Bakrie Telecom's Uber ESIA service based on 3G CDMA wireless technology.

Another positive point of this program is empowering women who live in rural area, since the main target is household community. Women have a significant role in helping the family's income, but they still have limited positions and access to economic resources. Central Statistics Agency data shows that out of a population of 97.5 million, only 35.4 million women (36.3 percent) are recorded as employed, of which 59.9 percent or 21.2 million graduated from elementary schools. Also, 26.3 million (74.28 percent) employed women work in an informal sector. Uber ESIA will facilitate them to gain additional income for their family.

Posted to the site on 29th July 2008