The Village Phone pilot project, which has seen 50 telephone sites implemented across rural Rwanda, has spurred local business in the three months it has been operational.
So says David Keogh, deputy director of the Grameen Foundation`s Technology Centre. US-based microfinance provider the Grameen Foundation, in conjunction with MTN Rwandacell, instituted the pilot.
"The success of the programme in Rwanda so far suggests long-term growth potential," he adds.
The programme provides cellular phones via a sustainable financing mechanism to start-up entrepreneurs who use the phone to operate a business, says Keogh.
Rwanda`s high population density, of 328 people per square kilometre, will further contribute to the sustainability of the programme, he says.
Keogh says Rwanda has proved a viable country for the scheme because of its advanced microfinance system. "Microfinance institutions can help start-up phone businesses with micro loans so they can purchase the starter kit."
The project is following the success of Uganda`s MTN Village Phone which has created 2 000 sustainable businesses in the country.
Hurdles
The Village Phone business kit comprises a Nokia 1100 handset with earpiece, an antenna coupler, a Yagi antenna, 10m antenna cable, car battery, car charger, Village Phone SIM card [with access to special Village Phone wholesale tariffs] and prepaid airtime.
Keogh says the greatest challenge in establishing Rwanda`s Village Phone system was the mountainous terrain. "Wireless telecommunications coverage requires line of sight from the receiver to the base station and mountains make that a bit difficult."
He adds that the booster antenna provided to Village Phone operators is a tremendous help in overcoming this challenge.
Related story:
MTN brings tele-access to rural Uganda
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