Telenor in Bangladesh (B) Case Case Study

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Operating in these conditions helped Telenor gain valuable experience and insights into how to plan future joint ventures and alliances in emerging, high growth 3rd world nations.

Indirect benefits included gaining greater insight and intelligence with regard to the Indian consumer cell phone market in general, and the village and rural market needs specifically. Partnering with Grameen Bank provided invaluable experiences in seeing how to create profitable businesses in each village. There are many indirect benefits to Telenor and Grameen from a CSR standpoint as well, as the cell phone service they provided turned out to be a critical catalyst for growing the economies of these rural communities. By participating in the joint venture, Telenor helped create a platform of economic growth for the 29,000 villages participating in the program.

How would you calculate the SROI (Social Return on Investment) for the Village Phone Project?

The Social Return on Investment (SROI) for the Village Phone Project needs to be calculated by comparing the costs and benefits of the investment from a social value perspective. Telenor and Grameen Telecom both shared a common vision of bringing telephone service to the most impoverished areas of Bangladesh. Telenor's investment of $40M and commitment to the program, combined with the $43.7M from Grameen Telecom along with two other partners, delivered mobile phone services to 68,000 villages, giving women in these villages a chance to significantly increase their incomes to $80 per month.

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Women reported that they were able to use these earnings to pay for their children's education, subsidize the development of new businesses and farms, and increase the quality of life for them and their families. This program also generated 600 jobs internally and 40,000 jobs externally by 2003, leading to a major contribution to employee's quality of life. When SROI is used for calculating the job creation factors of this program alone, the results are exceptional given the relatively small investment and timeframe to results achieved.

The unquantifiable aspects of the SROI include the communication links the village ranchers and townspeople have with doctors and family, making it possible to get better healthcare for their family members quickly. There is also the major economic contribution to the region of giving farmers the opportunity to keep their livestock healthier and more productive, as villagers can call a veterinarian and get treatment advice. They no longer have to….....

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