Introduction: The Three Forces of External-Combustion

Epilogue
Notes
Resources
Index

A

Aas, Erik, 124, 142, 151, 187
Abed, Fazle Hasan, 6
Ablaza, Gerardo C., 131
ACCION International, 21
ADB (Asian Development Bank), 74, 97, 99
Africa: bribery in South Africa, 117–118; licensing opportunities in, 115; mobile banking in, 132–134; prevalence of voice over text calls in, 142; rise in telephone subscribers in, 122–124; sales volume of prepaid SIM cards, xix, 155; village pay phones replicated in, 140
African National Congress (ANC), 108, 109
Aggregate wealth of poor, xxxi
Airtime, 93, 94, 95
Aktel, 84, 90, 181, 185
Alam, Mahbubul, 96
Alcatel, 62, 87
Ali, Monica, xxvii
Amazon.com, 11
America Online, 33
ANC (African National Congress), 108, 109
Apple Computer, 11, 33
Appropriate technology: digital divide and, xxxiii; myth of, 167–169
ApproTech (Appropriate Technologies for Enterprise Creation), 169
Asian Development Bank (ADB), 74, 97, 99
Asia Unplugged (Rao), 121
ATM cards, 133
Atrium Capital Corp., 42–43, 49, 61
AT&T, 59, 78, 84
Autarky, xxviii
Awami League, 6, 53, 82, 183, 184

B

Babu, Nolok, 142
Baez, Joan, 5
Bakht, Syed Yamin, 144
Banco de Oro, 129
Bangladesh: cell phone taxes, 186–187; cellular operators in, 124; contracts in, 91–92; corruption in, xxvii, 185; demographics and geographic resources of, 13; electrical grid, 96; fiber-optic cable laid in, 48; floods of 1974, xxviii, 6, 18; foreign investors in, xxxv, 182; hartals, 45, 53, 82, 182, 183–184; impact of foreign telecom investments, 157–158; impact of village pay phones in, 14–15, 31, 152–153; international submarine cable access, 195–196; Liberation War, 5–6, 173; literacy rate of, 4, 135, 193–194; martial law in, 45; NGOs in, 59–60; origins of, 5; phone service and, 4; politics in, 4–5; poverty reduction in, 193–195; projected growth of, 15–16; rapid urbanization of, 88; remittance transfers in, 126–127, 135–136; rivalry between India and, 58; social change in, 193–195; social effect of mobile services on, 146–148; telephone culture before GrameenPhone, 45–46; telephone subscribers in, 122; tender offered for cell phone licensing, 53, 64; U.S. venture capital for, 42–43
Bangladesh Human Rights Commission, 184
Bangladesh Idol, 142
Bangladesh National Party, 82, 183
Bangladesh Railway. See BR
Bangladesh: Reflections on the Water (Novak), xxx
Bangladesh Rural Advancement Committee (BRAC), 5–6, 37, 59, 170, 171, 173–174, 176, 194
Bangladesh Rural Telecom Authority (BRTA), 80
Bangladesh Telecommunication Regulatory Commission (BTRC), 157–158, 185–186
Bangladesh Telecom Regulatory Authority, 103
Bangladesh Telephone and Telegraph Bureau. See BTTB
Banglalink, 124, 185
Banker to the Poor (Yunus), 19
Banking: with cell phones, 125–128, 132–134; strategies of Grameen Bank, 25–26. See also Grameen Bank; Mobile banking
Begum, Delora, 14–15
Begum, Helena, 14
Begum, Laily, 90, 152
Bell, Alexander Graham, 10
Bell Atlantic, 49
Ben & Jerry’s Ice Cream, 72
Bessemer Venture Partners, 116
Bharti Mobile, 114, 121
Bilateral investment treaties (BITs), 54
Biodigesters for methane, 172, 175
Biogas: cow dung needed for production of, 167, 175; market testing, 172–174; opportunities for entrepreneurs with, 172
BITs (bilateral investment treaties), 54
Black Economic Empowerment Act, 110
Bonfire of the Vanities (Wolfe), 9
BOP (bottom-of-the-pyramid) business model, xvii, 129, 130, 203
BRAC (Bangladesh Rural Advancement Committee), 5–6, 37, 59, 170, 171, 173–174, 176, 194
BracNET, 194–195, 201
Brand, Stewart, 167
BR (Bangladesh Railway), 67, 86, 187; fiber-optic cabling along, 48–49; leases fiber to GrameenPhone, 91–92; Quadir proposes fiber bid for, 80–81
Bribery, 117–118
Brick Lane (Ali), xxvii
BRICs (Brazil, Russia, India, and China), 15
British East India Company, xxvii
British Telecom (BT), 59
Broadband wireless networks, 196
BRTA (Bangladesh Rural Telecom Authority), 80
BT (British Telecom), 59
BTRC (Bangladesh Telecommunication Regulatory Commission), 157–158, 185–186
BTTB (Bangladesh Telephone and Telegraph Bureau): attitude toward competition, 79; cell operations of, 124; complaints about, 185–187; connection dispute with PBTL, 54–55; development by, xxx, 35; GrameenPhone’s relations with, 67, 89, 97–99; interconnection with GrameenPhone, 84, 95–97, 99, 102, 186; new service connections from, 45; questions GrameenPhone licensing, 82, 83–84; rejects proposal to lease fiber, 80; relations with Alcatel, 62; resists fiber leasing, 91; role in submarine cable operations, 196; uninterested in cellular business, 49; Yahya tries to lease fiber-optic cabling for, 48–49
Businesses: BOP model for, xvii, 129, 130, 203; domestic manufacturing and, 178–179; microfinance in solar, 171–172; model of village phone vs. biogas electrical, 177–178; startup times required for, xxviii; sustainability of, xx; wealth creation and small, 146. See also Microfinance; Wealth creation
Business Week, 93

C

Cable & Wireless, 110
Capital: development of MSI’s venture, 115–117; flight, 62; initial plans for GrameenPhone, 74; overestimating risk of foreign investment, 68–69; Pitroda’s vision of improving, 28; Quadir raises phone system investment, 42–44; raising U.S. venture, 42–43
Capitalism. See Inclusive capitalism
Carter, Jimmy, 18
Cash-in–cash-out problem, 140
CDC Capital Partners, 116
CDC (Commonwealth Development Corporation), 74, 97, 99
CDMA (Code Division Multiple Access) services, 121
C-DOT (Centre for Development of Telematics), 28–30
Cell, C, 118
CellBazaar, 142–144, 201
Cellnet, 113, 114
Cell phones: airtime of rural callers, 93, 94, 95; banking with, 125–128, 132–134; borrowed phones and SIM cards, 140–141; buying minutes on credit, 130; bypassing fixed-line network, 97–99; call pricing, 83–84, 151; “cell phone as cow” concept, xviii, 39–42; cellular operators in Bangladesh, 124; CityCell service, 53, 55, 84, 128, 185; climbing trees for better reception, 118; correlation between GDP and, 148; as credit card terminals, 134; development in Scandinavia, 51–55; as disruptive technology, xxiii; features of GSM, 56–57; flashing, 132; growth in MTN subscribers, 123, 124; handset costs of, xxxiv, 11; international calling rates, 155–156; international roaming agreements, 101; licensing tender in Zimbabwe, 112; loading money onto, 133–134; modeling network for, 79–80; MOPT floats tender for licensing, 53, 64; more voice than text calls in, Africa, 142; Mugabe’s opposition to, 111, 112; myths about poor and, 38; opinions in South Africa of, 109; PHS, 72–73; Pitroda’s development in India, 26–31, 55; prepaid subscriber cards for, 125–126; prepaid village service, 101; remittance flows via, 134–137; rise in African subscribers, 122–124; silent revolution of, 145; Skaar’s viability model for, 66–67; social impact of mobile credit, 133; subscriptions in India, 121; taxes in Bangladesh, 186–187; texting cash to cell subscribers, 131; texting rates for Philippines, 128; universal appeal of, xxxii; use during emergency flooding, 97. See also Costs; Village pay phones
Celpay, 133–134
Celtel International BV: about, xix; begins operations as MSI-Cellular Investments, 115; capital raised by, 116; Celpay owned previously by, 133; corruption policy at, 117; costs of operation for, 119–120; foreign investments in, xxvi–xxvii; MTC buys, 149; prepaid SIM card sales, 155; prosperity of, 118; reinvesting profits, 159; subscribers for, 123–124
Central Bank, 19
Centre for Development of Telematics (C-DOT), 28–29
CGAP (Consultative Group to Assist the Poor), 134
Chhaya, Mayank, 29
China, 54, 190
Chittagong University, 18
Chowdhury, Abdul-Muyeed, 5–6, 170, 173
Chowdhury, Tawfiq-e-Elahi, 10–11, 16, 173, 174, 175, 180, 183
Chu, Michael, 23–24, 25
Citigroup Venture Capital International, 21, 116
CityCell, 53, 55, 84, 128, 185
Clapton, Eric, xxviii
Clinton, Bill, 18
Clinton, Hillary, 18
CNN, 32
Coca-Cola, 125
Cohen, Ben, 72
Commercial Bank of Africa, 140
Commonwealth Development Corporation (CDC), 74, 97, 99
Communication: as basic human need, xxiv, 111; literacy and oral, 142; universal appeal of cell phones, xxxii. See also Information communications technology
Computervision, 72
Concert for Bangladesh, xxviii
Connectivity: credit and, 39–42; India’s, 29; interconnections with BTTB fixed-phone network, 84, 95–97, 99, 102, 186; poor communications in Bangladesh and, 45–46; productivity and, 9–10, 37; reducing poverty with, xxxiv; rural access for India, 30–31; taxes on Bangladesh, 186–187
Consultative Group to Assist the Poor (CGAP), 134
Consumer surplus, 175
Contract validity, 91–92
Conway, Rob, 188
Coopers & Lybrand, 47–48, 108
Corruption: Bangladesh, 185; bribery in South Africa, 117–118; Corruption Perceptions Index, xxvii, 85; growth stymied by, xxvii; policy at Celtel, 117
Corruption Perceptions Index, xxvii, 85
Costs: BTTB and GrameenPhone call charges, 95; of cell phone handsets, xxxiv, 11; Celtel operation, 119–120; international calling rates, 155–156; international cell calling rates, 155–156; Orascom pricing war with GrameenPhone, 120; proposed for pricing for GrameenPhone, 83–84; set by phone ladies, 151; texting rates for Philippines, 128
Counts, Alex, 24, 139
Cow dung: amount needed for biogas production, 175; market testing biogas from, 174; as source of methane, 167, 172. See also Biogas
Craigslist, 142–143
Credit: buying SIMs cards on, 130; connectivity and, 39–42; moving to culture of, 126–127; social impact of mobile, 133; Yunus’ experiment with microcredit, 18, 19. See also Microloans
C-SAM, 26, 30, 138, 139
Currency risks and microfinance, 20–21

D

Daily Star, 83, 183, 184, 185, 191
Debit cards, 129, 133
DEKA Research & Development Corporation, 165
De Klerk, President, 108
Dell, 11
Democratization and privatization, 108
Demographics, of Bangladesh, 13
Denmark, 101
Department of Posts and Telecommunications (South Africa), 108
Deutsche Bank, 25
Developing countries: appropriate technology and, 167–169; bilateral investment treaties with, 54; corruption and, xxvii, 85, 117, 185; creating new services in, 35–36; defined by World Bank, 82; financial aid received by, xxviii–xxx; foreign investments in, xxix; GDP indicator for, xxix; income as development, xxxi–xxxii; income opportunities in, 146; Internet strategies in, 119; ladder of development, xxi; link between connectivity and productivity, 9–10, 37; martial law in Bangladesh, 45; need for disruptive technology, xxiii; obstructions of Bangladesh hartals, 183–184; remittance flows in, 135–137; resources of, 124
Development finance institutions (DFIs), 116
Dhaka Stock Exchange, 192
Dhaka University, 47
Digital divide: appropriate technology and, xxxiii; creating Digital Dividend, xxxii, 139, 155; taxes reinforcing, 188
Digital Dividend, xxxii, 139, 155
Digured, Knut, 58–59, 60
Dish-wallahs, xxxv, 31–33
Disruptive technology, xxiii
Dow Jones Sustainability Index, 200
Drayton, Bill, 161
Dr. Mo. See Ibrahim, Mohamed
Dylan, Bob, xxviii

E

East Pakistan, 5–6
EASY prepay card, 101
EBITDA (earnings before interest, taxes, depreciations, and amortizations), 102, 120
Econet, 112–113
Economic and Social Benefits of Mobile Services in Bangladesh (Ovum), 147–148
Economist, The, xxxii, 21, 112, 126
Economy: domestic manufacturing and, 178–179; effect of financial aid on, 11; opportunities out of poverty, 147; overcoming poverty with microloans, 161–162; reduced poverty in Bangladesh, 193–195; technology and growth in, 11–12. See also GDP; Microfinance
EDGE technology, 196
Education, Quadir’s, 7–8
Egypt, 116, 149
Electricity: Bangladesh protests over, 183–184; Bangladesh’s access to, 166, 170; electrical grid in Bangladesh, 96; generating methane for, 172; production of methane-powered Stirling engines, 174–175; solar-powered, 171; startup costs of plants, 175–176. See also Biogas
Electronic cash wallet, 129, 131
Emergence Bio-Energy: Chowdhury’s role in, 173; formation of, 167; manufacturing Stirling engines in Bangladesh, 178–179; modeling plans for, 176–178; need for in Bangladesh, 169–170; potential impact of, 179–180; sales goal for biodigesters, 175
Emerging Markets Handset initiative, xxxiv, 187
Emerging Markets Partnership, 116
Empowerment: MTN associated with black, 110; phone ladies’ contributions to women’s, 152–153
Entrepreneurs: biogas, 172; C-DOT establishes phone, 28–30; Mailman’s success, 201; phone ladies as, 130, 152–153; prepaid SIM card sales, xix, 155; Quadir’s success as native, xxv, xxx, 201; sari sari owners as, 130, 153–154; as source of external combustion, xxv–xxvi; Vodacom franchise, 154–155. See also Ibrahim, Mohamed; Phone ladies; Quadir, Iqbal; Village pay phones; Yunus, Muhammad
Eradicating Poverty Through Profits Conference, 139
Ericsson, 85, 87, 112, 158
Estrada, Joseph, 128
Exchange Wallet, 137–138
Exogenous shock, xx–xxii
Export aid zones, xxxiii
External combustion: disruptive technology and, xxii–xxv; foreign investors and, xxvi–xxvii; microfinance with foreign investment, xxxii; native entrepreneurs as source, xxv–xxvi
Far Eastern Economic Review, 93

F

Fertilizer, 175
Fiber-optic cabling: advantage to GrameenPhone, 78–79; BR proposed Bangladesh, 48–49; GrameenPhone’s proposal to work with BR, 80–81; importance of in GrameenPhone investments, 67; laying of in Bangladesh, 48; lease won by GrameenPhone, 91–92
Fidjestol, Gunnstein, 65, 67–68, 69, 76, 79, 80, 83, 85, 90, 91
Financial aid: economic effects of, 11; received by developing countries, xxviii–xxx
Financial Express, 190
Financial Intelligence Centre Act, 133
Financial Times, 124
Financiera Compartamos, 25
Fingerprint biometrics, 133
Finnet, 52
Finnish Telecom, 52
First e-Bank, 129
First-mover advantage: GrameenPhone’s, 76, 90, 92; MTN’s, 110–111
First Rand Bank of South Africa, 133
Fisher, Martin, 168–169, 178
Fitch, 25
Fixed-line networks: GrameenPhone bypasses, 97–99; limitations of African, 154
Flashing, 132
Flight capital, 62
Floods of 1974, xxviii, 6, 18
Ford Foundation, 19
Ford, Henry, 151–152
Foreign investments: advantages of Bangladesh telecom for, 58–60; amount received by developing countries, xxix; Bangladesh’s, xxxv, 182; Celtel and, xxvi–xxvii; contributions to development by, 145–146; GrameenPhone’s success due to, xxvi; knowledge transfer with, 89; licensing and taxes on, 189–191; microfinance and, xxxii; overestimate of risk in, 68–69; reinvesting profits, 157–159, 190–191; social impact of foreign telecom investments, 157–159; treaties protecting, 54; yearly rates of, 4
Fortune at the Bottom of the Pyramid (Prahalad), xxxi
Fredrik, Jon, 199–200
Friedman, Thomas, 163

G

Gandhi, Indira, 27–28, 29
Gandhi, Rajiv, 28, 29, 30
G-Cash, 131, 137
GDP (gross domestic product): chart of developing country’s, xxix; corporate profits and, 186–187; defined, xxi; driving with ICT, 146–149; growth in Bangladesh, 193; U.S. vs. Bangladesh, 11
Gladhill, Herbie, 62
Globalization: GrameenPhone as sign of, 16; Yunus’ impact on global community, 161
Global System for Mobile Communications (GSM), 51, 56–57, 74, 121, 199
Global TeleSystems (GTS), 43
Globe Telecom: about, xix; introduces G-Cash, 131, 137; market share of, 128; mobile banking of, 139–140; mobile dominance over Filipino fixed-line phones, 123; prepaid SIM cards, 141; Txt Bak Mo, 132
GNet, 194
Goldman Sachs, 15, 44
Gonofone Development Corporation: establishment of, xxv, 43; Grameen Bank’s interest in, 52; as part of collective owning GrameenPhone, 72, 73, 74; Quadir’s development of, 62, 70; seeks new investment capital, 99–100; sell shares in GrameenPhone, 163–165, 191, 201
Good Faith Fund, 18
Governments: corruption in, xxvii, 85, 117, 185; disruptions in emerging, 183–184; taxes levied on cell industry, 183, 185–188; time required to start businesses, xxviii
GP-GP service, 98–99, 101, 154
Grameen Bank: banking strategies of, 25–26; feasibility study for communications by, 55–56; GrameenPhone organized by, 71–73; interest rates, 22–23; Islamic reactions to, 22–23; microloans for Internet kiosks, 196–197; organization of, 36–37; origins of, 19–20; partners with Groupe Danone, 200; phone ladies as borrowers from, xviii, 14–15, 94, 153; Quadir’s entrepreneurial influence on, xxv, xxx, 62–64; role in Bangladesh telecom development, 35, 38; role in microfinance, 17; social effect of, 146–147; types of loans, 21–26; Yunus’ strategy for, 25–26
Grameen Foundation USA, 21, 24, 131, 139, 140, 141
Grameen Fund, 61
GrameenPhone: about, xvii–xviii, xxii; advantage of fiber-optic cabling to, 78–79; bypasses fixed-line network, 97–99; cash flow problems of, 99–100; CellBazaar, 142–144, 201; competitors of, 124; complaints about BTTB and BTRC, 185–187; developing network for, 87–90; development of village pay phones, 92–95; first calls by, 89–90; first-mover advantage of, 76, 90, 92; first offices for, 88–89; foreign investors’ role in, xxvi, 3; Gonofone negotiates larger shares of, 163–164; GP-GP service, 98–99, 101, 154; growth mode begins for, 101–103; improves relations with BTTB, 89; increases in village pay phones, 150–152; initial proposal for, 39–42; initiation of SMS, 101; interconnection with BTTB, 84, 95–97, 99, 102, 186; IPO for, 191–192; licensing of, 84–85, 189; memorandum of understanding for, 73–74; mobile banking activities of, 135; modeling cellular network, 79–80; MSI funding vs., 115–116; name given by Yunus, 70; number of employees in Bangladesh, 149; organization of, 71–73; places bid for license, 76; positive face of globalization, 16; prepaid phone cards and, 125–126; pricing, 83–84, 120; proposal for outside funds, 74–75; proposal to work with BR, 80–81; Quadir leaves, 102; Quadir’s initial role in, 85; rapid growth with subscribers, 151; reinvesting profits, 158–159; rollout strategies by Quadir, 76–77; sets opening day for network, 85; Shams’ role in, 47; sign of globalization, 16; SMS contributions to income, 142; social effect of, 146–147; telephone culture before, 45–46; text messages from, 181–182; wins fiber lease, 91–92
Grameen Shakti, 171
Grameen Telecom, 46–47, 71–72, 74, 76, 94, 99, 100, 151, 163, 164, 192, 196
Greenwald, Jeff, 31, 32
Gross domestic product. See GDP
Groupe Danone, 200
Growth: BRICs and, 15; Harrod-Domar model of, 11; link between telecommunications and, 26; projected for Bangladesh, 15–16; starting small to create, 12–13; technology and economic, 11–12; tiger economies and rapid, xxxiii, 16
Growth Guarantees, 21
GSM Association, 162, 187, 188
GSM Association Emerging Markets Handset initiative, xxxiv, 187
GSM (Global System for Mobile Communications), 51, 56–57, 74, 121, 199
GTE, 26
Gustavus Adolphus, 7

H

Handsets: costs of, xxxiv, 11; Emerging Markets Handset initiative, xxxiv, 187
Harrison, George, xxviii, 6
Harrod-Domar model of growth, 11
Hartals, 45, 53, 82, 182, 183–184
Harvard: Business School, 23; Kennedy School of Government, xxiii, 102
Harvard Business Review, 8–9, 26, 28, 30
Hasina, Sheikh, 6, 82, 84, 89–90, 183
Hermansen, Tormod, 69, 70, 73, 77
Hertz, 181
Hewlett Packard, 141
Hiatt, Arnold, 72
“Hidden Wealth of the Poor, The” (The Economist), 126
Hierarchy of needs, xxiv
Huberts, Marco, 62
Huq, Muzammel, 68
Ibrahim, Mohamed (Dr. Mo), 156; on development of Celtel, xxvi–xxvii; develops MSI, 113–114; estimates sales of prepaid cards, 155; investments by, 117; policy on bribes, 117–118; sells Celtel, 159

I

ICT. See Information communications technology
ICT Statistics, 122
IDCOL (Infrastructure Development Company Limited), 171
IFC (International Finance Corporation), 74, 75, 97, 99, 116, 140–141
Inclusive capitalism: about, 145; phone ladies and sari sari owners exemplifying, 130; wealth creation and, xxxi
Income: Bangladesh, 4; as development, xxxi–xxxii; sari sari reseller, 153–154; SMS contributions to, 142; wealth creation and, 146
Independence IBOT Mobility System, 165
Independent, The, 96, 136, 183
India: bidding for cell licenses in, 57, 58; cellular subscriptions in, 121; dish-wallahs of Delhi, xxxv, 31–33; Pitroda’s innovations in telecommunications, 26–29, 55; rivalry between Bangladesh and, 58; roaming agreements with, 101; Tata Group invests in Bangladesh, 190–191
Information communications technology (ICT): building middle-class wealth with, 146; caste system and, 31; communications as basic human need, 111; disruptive nature of, xxii–xxv; driving GDP with, 146–149; extending financial services via mobile, 139; India’s limitations in, 27; Mifos architecture for microfinance systems, 141–142; monopolies underestimate impact of, 33; social impact of, xvii, 146; as social leveler, xix, 125; Yunus urges privatization of communications, 102–103
Infrastructure, 36
Infrastructure Development Company Limited (IDCOL), 171
Interest rates, 22–23
International calling rates, 155–156
International Finance Corporation (IFC), 74, 75, 97, 99, 116, 140–141
International Herald Tribune, 93, 188
International submarine cable, 195–196
International Telecommunications Union (ITU), 37, 122, 148
Internet kiosks, 196–197
Investcom Holding, 124
Investments. See Capital; Foreign investments
IPO for GrameenPhone, 191–192
Iraqna, 120
Isa, Masud, 76
Islam: interest rates forbidden in, 22–23; modernity of Bangladesh women, 4
Ismail, Mohammed, 4
ISPs (Internet service providers), 196
IT. See Information communications technology
ITU (International Telecommunications Union), 37, 122
IVeri Payment Technology, 134

J

Jagland, Thorbjorn, 90
Johnson & Johnson, 165
Jorstad, Mette, 61
Joseph, Michael, 124
Junior Chamber International, 113

K

Kahn, Fouzul Kabir, 171
Kahn, Louis, 76
Kamen, Dean, 165–167, 174
Kenya Telecom, 124
Kholsa, Vinod, 24
KickStart, 168–169, 178
Kissinger, Henry, xx
Kleiner Perkins, 24
Knowledge transfer: with foreign investments, 89; manufacturing Stirling engines in Bangladesh and, 178
Kyivstar, 200

L

Ladder of development, xxi
Lagos, Ricardo, 17
Landes, David, xxii
Lemelson Foundation, 165, 174
Lexus and the Olive Tree, The (Friedman), 163
Liberation War, 5–6, 173
Libre Ko, 132
Licensing: Egypt sells third GSM license, 149; GrameenPhone places bid for, 76; increasing costs of cellular, 189–191; opportunities in African, 115; Yunus argues for GrameenPhone, 84
Lindemann, George, 49–50
LINKdotNET, 119
Literacy: in Bangladesh, 4, 135, 193–194; tradition of oral communications and, 142
Loans: given to women, 22; interest rates of Grameen Bank, 22–23; types of, 21–26
London School of Business, xxxiv, 148–149, 151
Los Angeles Times, 93

M

Maestro debit card, 133
Magnusson, Bo, 52, 57, 64
Mailman, Josh, 43, 61, 64, 65, 72, 100, 150, 158, 165, 189, 201
Mandela, Nelson, 107, 108, 109, 110, 111, 154
Market testing biogas, 172–174
Marshall Plan, 11
Martenson, Gunnulf, 52
Marubeni Corporation, 72–73, 75, 81, 85, 99, 163–164
Masiyiwa, Strive, 111, 112
Maslow, Abraham, xxiv
Massachusetts Institute of Technology, 201
MasterCard, 129, 133
McCaw Cellular Communications, 78
MCI, 48, 84
McKinsey & Company, 68–69
M-commerce: about, 127; CellBazaar, 142–144, 201; MFIs and, 141–142; potential for growth, 144, 201
Memorandum of understanding, 73–74, 191
Methane: biodigesters for, 172, 175; credits for, 175. See also Biogas; Cow dung
Metro Mobile cell phones, 49
Mexico, 15, 25
MFIs (microfinance institutions): currency risks and, 20–21; m-commerce and, 141–142
Mibanco, 25
Microfinance: BOP business model, xvii, 129, 130, 203; cell phones and, 127; Clinton’s program for, 18; currency risks and, 20–21; foreign investment and, xxxii; Grameen Bank’s role in, 17; importance of, 24; interest rates and, 22–24; prepaid subscriber cards, 125–126; repaying loans with G-Cash, 131; role in Bangladesh solar business, 171–172; Yunus’ experiment with microcredit, 18, 19
Microloans: about, 17; appropriate technology made affordable with, 169; demand for, 24–25; mobile banking and, 139–141; successes of, 161–162
Micro power plants, 174–176
Microsoft, 11, 56–57, 98
Microwave links, 96
Middlebury College, 43
Mifos (Microfinance Open Source) project, 141
Mikati, Azmi, 124
Mills, Pierre Landel, 82
Ministry of Posts and Telecommunications (MOPT), 53, 76, 91, 102
M-Net, 107
Mobikom, 200
Mobile banking: in Africa, 132–134; birth of, 127–128; cell phones and, 127; GrameenPhone, 135; m-commerce and MFIs, 141–142; microloans via, 139–141; M-Pesa, 140; remittance flows via cell phones, 134–137; SMS culture needed for, 142–144; social impact of credit, 133; using Smart Money, 129; wealth and, 134–135. See also Credit
Mobile Systems International (MSI), 114, 115–117
Mobile-to-mobile networks, 97–99, 154
MobiNil, 119
Moe, Trond, 96, 97, 98, 103
MoneyMaker irrigation pumps, 169, 178
Money transfers: about, xix; remittance flows via cell phones, 134–137
Moore’s law, xx, 44, 167, 175, 179
MOPT (Ministry of Posts and Telecommunications), 53, 76, 91, 102
Motlana, Nthato, 109, 110
Motorola, xxxiv
M-Pesa, 140
MSI (Mobile Systems International), 114, 115, 116–117
MTC, 120, 149
MTN: 10 Years of Cellular Freedom, 107–108
MTN Banking, 132–133
MTN (Mobile Telephone networks): associated with black-empowerment movement, 110; competitors of, 113, 118; first-mover advantage used by, 110–111; limited interest in sub-Saharan networks, 114; listed on Johannesburg Stock Exchange, 111; mobile banking of, 132–134; number of subscribers of, 155; origins of, 107–108; prepaid SIM cards, 141; subscribers for, 123, 124; taxes on, 188; village phone model replicated by, 140
Mugabe, Leo, 112
Mugabe, Robert, 111, 112
Mujibur Rahman, Sheikh, 6, 45, 82
Mukherjee, T., 191
Murrow, Edward R., 182

N

NAFTA (North American Free Trade Agreement), 54
NAIL (New Africa Investments Limited), 109–110
National Board of Revenues, 102
Nazareno, Napoleon L., 129, 130
Negroponte, Nicholas, 168
Nepal, 64–65
Netherlands Development Finance Company, 116
NetOne, 112
New Africa Investments Limited (NAIL), 109–110
New Age, 189
New Statesman, The, 94
New York Times, 124
NGOs (nongovernmental organizations), 59–60
Nhleko, Phuthuma, 188
Nippon Telegraph and Telecom (NT&T), 59, 72–73
NMT (Nordic Mobile Telephone), 51
Nobel Peace Prize, viii, xviii, 17, 18, 199
Nokia, 52
Nongovernmental organizations (NGOs), 59–60
NORAD (Norwegian Agency for Development and Cooperation), 48, 51–52, 55–56, 61, 64, 69, 80, 99
Nordic Mobile Telephone (NMT), 51
Nordin, Bertil, 52
North American Free Trade Agreement (NAFTA), 54
Norway, 54, 77, 101
Norwegian Televerket, 53
Novak, Robert, xxviii, xxx
NTT (Nippon Telegraph and Telecom), 59, 72–73
Nye, Joseph, 163

O

Oberlin College, 37
Ode magazine, 146
One Laptop Per Child nonprofit organization, 168
OneWallet software, 138
Open Society Institute, 100
Opportunity Bank of Malawi, 133
Orascom Telecom Holding (OTH): about, xix; Banglalink, 124, 185; cellular development by, 119–120; competitor with GrameenPhone, 143, 158, 192; investments in Bangladesh, 87; pricing war with GrameenPhone, 120; purchases Sheba Telecom, 120
Ovum, 147

P

Pacific Bangladesh Telecom United (PBTL), 53, 54
Patel, Praful, 193
PayPal, 138
PBTL (Pacific Bangladesh Telecom United), 53, 54
Peace Corps, 181
Perry, Wayne, 78
Personal Handy-Phone System (PHS), 72–73
Philippine Long Distance Telephone Company (PLDT), 128
Philippines: cell phones and GDP, 149; mobile banking in, 127–128; sari sari reseller income in, 153–154; SIM card sales by sari sari owners, 130; texting rates for, 128
Phone ladies: about, xviii, 14–15; as borrowers from Grameen Bank, xviii, 94, 153; call prices set by, 151; exemplifying inclusive capitalism, 130; first, 90; ideas originating, 40–42; numbers of, 149; social impact of, 152–153
Phone services: airtime of rural and urban phones, 93; Bangladesh, 10–11; C-DOT, 28–30; CityCell service, 53, 55, 84, 128, 185; connectivity and productivity, 9–10, 37; costs of cell phone handsets, xxxiv, 11; fixed-line networks, 97–99, 154; modeling cell phones services, 66–67; myths about cell phones and poor, 38; Pitroda sees opportunities in, 26–29; prepaid cell service, 101; pricing and fees proposed for GrameenPhone, 83–84; Quadir raises investment capital for, 42–44; Quadir’s insight into connectivity, 9–10; rates of in Dhaka, 4; Scandinavian, 51–55; telephone culture before GrameenPhone, 45–46; village cell phones, 14–15, 26–31; Yunus urges privatization of, 102–103. See also Village pay phones
PHS (Personal Handy-Phone System), 72–73
Pitroda, Sam: communication as basic human need, xxiv; develops IT in India, 26–31; develops OneWallet software, 137–139; as inspiration to Quadir, 121; meets with Yunus and Grameen Bank, 55; returns to India after making wealth, 26, 44; technology as social leveler, xix, 31, 125
Planet, 114
PLDT (Philippine Long Distance Telephone Company), 128
Politics in Bangladesh, 4–5
Poor: aggregate wealth of, xxxi; cell phones and, 38; loans to, 22
Posts and Telecommunications Corporation (PTC), 111–112
Poverty: aggregate wealth of poor, xxxi; connectivity’s reduction of, xxxiv; need for disruptive technology to offset, xxiii; opportunities out of, 147; overcoming with microloans, 161–162; rates of reduction in Bangladesh, 193–195; shocks breaking cycle of, xxi–xxii
PPP (purchasing power parity) methodology, xxix, 58
Prahalad, C. K., xxxi
Prepaid SIM cards: borrowed phones and, 140–141; buying on credit, 130; impact of sari sari resellers, 153–154; mobile banking with, 125–126; MTN’s, 141; voice-and-text combinations, 128–129; volume of sales in Africa, xix, 155
Preston, Billy, xxviii
Privatization, 108
ProCredit, 25
Productivity: connectivity and, 9–10, 37; phone as tool for, 40–42
Profits: GDP and corporate, 186–187; reinvesting, 157–159, 190–191
Profund, 20–21
Project Dignity, 22
PTC (Posts and Telecommunications Corporation), 111–112
Purchasing power, xxxi
Purchasing power parity (PPP) methodology, xxix, 58
PureTxt 100, 129

Q

Quadir, Iqbal: about, xviii; appointed to GrameenPhone Steering Committee, 73; on appropriate technology, 169; argues case for Bangladesh telecom investments, 58–61; awarded Rotary SEED Award, 199; calculations of impact of telecom on GDP, 148; call tariffs for village phones, 151; death of father, 6, 7; develops business perspectives, 8–9, 46–47; education of, 7–8, 9; electricity modeling based on Skaar’s cell modeling, 176; on electricity production, 171; emigrates to U.S., 7; on fiber-optic opportunity, 48–49, 79; forms Emergence Bio-Energy, 167; influenced by Yunus’ philosophy, 35; initial role in GrameenPhone operations, 85; on innovations in technology, 14, 15, 32–33; insight into connectivity, xviii, 9–10, 107; inspirations for GrameenPhone by, 3–5; installs base stations out of Dhaka, 92; on interconnection with BTTB, 99; interest in Stirling engine, 166–167, 170; leaves GrameenPhone, 102, 162–163; meets Yunus, 37–38, 39, 41, 42; need for disruptive technology, xxiii; negotiates with Telenor, 69; persuades Grameen as new investor, 61–64; Pitroda’s influence on, 26; prepares rollout strategies, 76–77; proposal to work with BR, 80–81; proposes “cell phone as cow” concept, xviii, 39–42; raises investment capital for phone system, 42–44; reinvests in Gonofone, 100; represents Gonofone in GrameenPhone development, 72, 73; role in Emergence Bio-Energy, 179; seeks funding in Scandinavia, 51–53; sees Bangladesh as sleeping tiger, 16; signs memorandum of understanding, 73–74; on starting small, 12–13; on startup costs of electrical plants, 175–176; submits licensing bid for GrameenPhone, 76; success as native entrepreneur, xxv, xxx, 201; on success of phone ladies, 152–153; teams with Kamen, 165–167; vision for Internet kiosks, 197; works for Grameen Fund, 61
Quadir, Kamal, 37, 142–143, 201
Quadir, Khalid, 38–39, 43, 194, 201
Quadir, Samina, 64
Qwest Communications, 48

R

Rahman, Munshi, xix
Rahman, Saifur, 189
Ramaphosa, Cyril, 109
Rao, Madanmohan, 121
Reagan, Ronald, 146
“Real Digital Divide, The” (Economist), xxxii
REB (Rural Electrification Board), 170
Reinvesting profits, 157–159, 190–191
Reliance, 121
Remittance flows via cell phones, 134–137
Rockwell International, 26, 27
Rotary SEED Award, 199
RTS (Rural Transaction System), 141
Rural Bankers Association of the Philippines, 131, 139
Rural Electrification Board (REB), 170
Rural regions: airtime of callers in, 93, 94, 95; income opportunities in, 150–154
Rural Transaction System (RTS), 141
Russell, Leon, xxviii

S

Sachs, Jeffrey, xxi
SA Clothing and Textile Workers Union, 110
Safaricom, 124, 140
Sangin, Amir Zai, 53
Sarin, Arun, 139, 142, 157
Sari sari owners, 130, 153–154
Sawiris, Naguib, 119, 120
Sawiris, Onsi, 119, 120
Schumacher, E. F., 167
SEDF (Soros Economic Development Fund), 100
Segway Human Transporter, 165
Self-employment: lowering poverty with, 147. See also Phone ladies; Village pay phones
Sesay, Emma, xix
Shams, Khalid: about, 47; advocates public offering of GrameenPhone, 192–193; on BTTB fiber lease, 91; on CellBazaar, 143; connection with Quadir and Yunus, 41, 47; on current GrameenPhone revenues, 151; developing financing and bids for GrameenPhone, 74, 76, 82–83, 84, 85; interest in EDGE technology, 196; on loan from Soros Economic Development fund, 100; negotiates with Telenor for GrameenPhone bid, 68, 69–70, 151; offers Quadir job at Grameen Fund, 61; on politics of Bangladesh, 184; silent revolution of cell phones, 145; on structure of GrameenPhone, 72; Telia negotiations, 53; on urbanization of Bangladesh, 88; on Yahya, 80
Shankar, Ravi, xxviii
SharedPhone, 156–157
Sharia, 23
Shaw, Bernard, 32
Sheba Telecom, 85, 87, 90, 120
Shell Oil, 6
Short message service (SMS). See Texting
SIM cards. See Prepaid SIM cards
Singh, Herman, 133
SingTel, 128
Sirkeinen, Yjro, 52
Skaar, Inge: as GrameenPhone CEO, 85–86, 87, 88, 89, 96; plan for base station installations, 92; Quadir’s electricity modeling based on cell modeling of, 176; role in preparing Telenor bid, 65–68, 69, 74, 75, 76, 77, 79, 83
Slingshot, 166
Sloan School of Management, 143
Small Is Beautiful (Schumacher), 167
Smart cards, 133
Smart Communications: operations of, xix, 123, 128–131; Smart Buddy, 128–129; Smart Load, 129, 130; Smart Money, 129, 138; Smart Padala, 137
SMS (short message service). See Texting
Social impacts: of foreign telecom investments, 157–159; information technology as social leveler, xix, 125; loading money onto cell phones, 133–134; of mobile credit, 133; SMS required for mobile banking, 142–144; social change in Bangladesh, 193–195; of Stirling engine on village life, 174; technology-induced paradigm shifts, 139; tradition of oral communications and literacy, 142; of village phone ladies, 14–15, 31, 152–153
Social Venture Network, 43
Solar technology, 168, 171
Solow, Robert, 11–12
Solow’s surprise, 11–12
“Song of Bangladesh” (Baez), 5
Soros Economic Development Fund (SEDF), 100
Soros, George, xxvi, 43, 100
Sources of Growth and Productivity in Bangladesh, 193
South, xvii
South Africa: Black Economic Empowerment Act, 110; cellular licensing in, 107
South African Black Taxi Association, 110
Standard Bank, 132
Standby letter of credit (SBLC), 21
Stanford Graduate School of Business, 24
Starr, Ringo, xxviii
Star TV, 32
Steyn, Warren, 156–157
Stirling engines, 166–167, 170, 172–174, 176–177, 178
Stride Rite, 72
Subscriber identity module (SIM) cards. See Prepaid SIM cards
Sun Microsystems, 24
Sustainability, xx
Swarthmore College, 8
Synvis, Odd, 57, 60, 61, 64
Syriatel, 120

T

Tammany Hall, 184
Tata Group, 58, 190–191
Tax and the Digital Divide (GSM), 188
Taxes: Bangladesh cell phone, 185–187; changes after removal of mobile-specific, 187–188
Technology: appropriate, 167–169; economic growth and addition of machines, 11–12; as social leveler, xix, 125; technology-induced paradigm shifts, 139
Telecel, 112
Telecom in sachets, 129, 130, 153–154
Telecommons Development Group, 136, 151
Telecon, 52
Telekom Malaysia, 84
Telenor: about, xviii; arguments for backing GrameenPhone, 77; backs GSM design, 56; in Gonofone share negotiations, 164; GP-GP all-mobile service, 98; increases investment in GrameenPhone, 99; international investment experience of, 71, 82; invest in GrameenPhone’s licensing bid, 65, 67–68, 69, 72, 74, 77, 82; on IPO listing for GrameenPhone, 192–193; as partner with Telia, 52–53, 60; pleased with GrameenPhone performance, 199–200; Quadir loses board seat for, 102; reinvestment vs. repatriation of profits, 158; requests fiber-optic support in Bangladesh, 61; Skaar serves as GrameenPhone CEO, 85–86, 87, 88, 89, 96; sponsors feasibility study for GrameenPhone, 64; Synvis supports Quadir’s vision, 57–58, 60
Telenor Consult, 64
Teleplan, 56, 168
Teletalk, 124
Telia International, 52–54, 56–57, 60, 62, 64, 71, 121
Telkom, 107–108, 110
Texting: cash to cell subscribers, 131; casting votes for Bangladesh Idol via, 142; GrameenPhone initiation of, 101; messages from GrameenPhone, 181–182; mobile banking and, 142–144; Philippine rates for, 128; prepaid cards for voice-and-text, 128–129
Tiger economies, xxxiii, 16
Time magazine, 6
Transparency International Corruption Perceptions Index, xxvii, 85
Treaties protecting foreign investments, 54
Tufts University, 153
Txt Bak Mo, 132

U

UAE Etisalat, 149
UAE Exchange Wallet, 137–138
UBS Global Research, 60
UCOM, 62
United Nations Development Programme, 193
University of Wales, 112
Urbanization of Bangladesh, 88
US WEST, 48

V

Vanderbilt University, 18
VCom, 117
VCRs, 31
Venture capital. See Capital
Village pay phones (VPPs): development of, 92–95; Emergence Bio-Energy model vs., 177–178; ideas originating, 40–42; impact of in Bangladesh, 14–15; increases in, 150–152; as instrument of social change, 31; microfinance and, 139; origins in India of, 26–31; PC model for viability of, 66–67; planning leading to, 66; prepaid service for, 101; remittances via, 136–137; replicated in Africa, 140; Soros’s support of, 100
Villers, Phil, 72
Virgin Group, 118
Virgin Mobile, 118
Vishnui, Deepak, 32
Vodacom, 110, 113, 114, 118, 119, 154–155
Vodafone, 110, 124, 139, 142, 157

W

Wajed, Sheikh Hasina, 6, 82, 84, 89–90
Waldorf College, 7
Wallah, 31
Warid Telecom, 124, 143, 158, 185, 189, 192
Water purification devices, 166
Waverman, Leonard, 151
Wealth and Poverty of Nations (Landes), xxii
Wealth creation: appropriate technology and, 167–169; building middle-class with information technology, 146; contributions by foreign investments, 145–146; inclusive capitalism and, xxxi; mobile banking and, 134–135; overview of, 145–146; private enterprise’s role in, xxx–xxxi; rates of poverty reduction in Bangladesh, 193–195; rural income opportunities and, 150–154; village phones’ role in, 152
Western Union, 136, 137
Wharton School of University of Pennsylvania, 8, 9, 45
Whole Earth Catalog (Brand), 167
Wired magazine, 31
Wireless networks, 194
WIZZIT, 133
Wolfe, Tom, 9
Women: birth rate and employment, 60; as loan recipients, 22; phone ladies, 14–15, 152–153; roles in Bangladesh, 4–5. See also Phone ladies
Wood, Tim, 140
World Bank, xxviii, xxxi, 8–9, 11, 26, 43, 54, 74, 82, 97, 135, 140–141, 150, 193, 194
World Economic Forum, 163
WorldPaper, The, 41, 94
World Resources Institute, 129, 130, 155
WorldTel, 55

Y

Yahya, Mokkaram, 48, 80
Yunus, Muhammad: assists Quadir’s telecom development, 47, 52, 53, 64, 67, 68, 69, 83, 84; awarded Rotary SEED Award, 199; backs Quadir’s rollout strategies, 76–77; as Bangladesh cabinet member, 82; banking strategies of, 25–26; envisions universal phone service, xxx; experiment with microcredit, 18, 19; founds Grameen Bank, 18–19, 36; on GP-GP service, 97–98, 99, 154; graduating from poverty with connectivity, xxxiv; international influence of, 17–18, 82, 161; loan policies of, 21–22; meets with Pitroda, 55; negotiates with Telia, 53–54, 60; optimistic about GDP growth rate, 194; philosophy of, 35; on politics of Bangladesh, 184; price issues for village phone system, 66; Quadir meets, 37–38, 39, 41, 42; role in GrameenPhone, 70, 71–72, 73, 85, 100; on social effect of Grameen Bank and GrameenPhone, 146–147; on success of phone ladies, 152–153; suggests Quadir approach NORAD, 61; urges privatization of communications, 102–103

Z

Zephyr Asset Management, 116
Zia, General, 45
Zia, Khaleda, 82, 183, 196
Zimbabwe telecom development, 111–112