Grameen’s famous Village Phone Program lifted thousands out of poverty– and helped Muhammad Yunus win the Nobel Peace Prize. The problem: It’s not working anymore.
According to Grameen Telecom, the GrameenPhone affiliate that manages the program, profits per operator have been declining for years and in 2006 averaged less than $70. “The program is not dead,” says its manager, Mazharul Hannan, chief of technical services at Grameen Telecom, “but it is no longer a way out of poverty.”
The reason is simple: Technology and GrameenPhone itself have made the village phone obsolete. Access to cell phones has expanded rapidly across Bangladesh, as in other developing nations. GrameenPhone, largest of the nation’s six cellular providers, has more than 13 million subscribers, with yearly revenues of nearly $700 million.…
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