A.10 Investors in GrameenPhone and Hardware Providers

GrameenPhone is a public limited company incorporated in 1996. The following is a brief description of the GrameenPhone shareholders:

Telenor AS is the telephone operating company of Norway and it owns 51% of GrameenPhone Ltd. Telenor has helped to lead the development of cellular technologies across Europe and is using its extensive experience to invest in Bangladesh’s emerging market.

Grameen Telecom is a non-profit organization which holds 35% of GrameenPhone’s shares. Grameen Telecom uses the existing Grameen Bank network to facilitate Village Phone services in rural areas throughout Bangladesh, providing a new source of income for villagers and allowing easy access to telephones.

Marubeni Corp. is one of Japan’s leading companies involved in international trade, marketing and investment ventures. Marubeni invests world-wide in manufacturing and infrastructure projects, including telecommunications. As a 9.5% shareholder in GrameenPhone, Marubeni aims to improve Bangladesh’s overall capacity to contribute to the global economy.

Gonofone Development Corp. (4.5%) is the New York-based company responsible for the concept of what is now GrameenPhone. Gonofone was incorporated in 1994 to develop telecommunications projects internationally.

In addition, GrameenPhone received a $50 million loan from three leading international financial institutions in order to become established: the International Finance Corporation (IFC), the Asian Development Bank (ADB) and the Commonwealth Development Corporation (CDC). These organizations each hold three per cent of GrameenPhone preferred shares.

Hardware providers

The GrameenPhone network uses Global System for Mobile Communications cellular and optical fibre transmission technologies. GrameenPhone has leased a 1,800km-long optical fibre transmission system from the Bangladesh Railway (BR). Other hardware providers for the project include:

• Ericsson, Sweden : contracted for two system components - a switching centre in Dhaka (turnkey system) and cell site (base station) equipment
• SEMA, France : sub-contracted by Ericsson to provide a turnkey billing system
• Telenor Installation, Norway : fee-for-service contract to provide installation services of the cell sites. Telenor Installation will also help design the civil works, as needed (Telenor press release on GrameenPhone)
• Siemens, Germany ; NEC, Japan and others: suppliers for additional equipment, such as microwave radio equipment, as required.

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