The Cambodia Village Phone Company (CVP) was established in June 2007 to explore the potential to expand telecom services into rural Cambodia.The company saw the opportunity to implement the Grameen approach to the Village Phone in Cambodia as a win-win partnership and a unique way to grow rural enterprises in a sustainable way.

The population of Cambodia is estimated to be 14 million people in 2009. Of this 85% live in rural area with the majorityrelying on agriculture cultivation. There is still a big gap between rich and poor and one area that contributes to this is the lack of access to affordable communication and information. The birthrate is 2.4%1annually and the number of young adults is 50% of the population. Urban migration is on the increase with many people moving to Phnom Penh to work or study, many in the garment and tourism sectors. They need to connect back to their family in the provinces however teledensity is very low with only 0.26%fix-line per 100 inhabitants2 (ITU, 2004) there is a heavy reliance on the mobile phone network Even with 1.2million mobile subscribers, many people cannot afford or do not wish to own a phone so they rely on local public call booth (PCB) operators for their communication needs.

This informal nature of the PCB sub-sector of the telecom market has emerged to meet a growing need for phone services. However the majority of these operators are in urban centers, leaving many rural areas still unconnected.
The recent expansion of mobile coverage in Cambodia now makes it technically possible to connect over 75% of
the villages in the country. The new Cambodia Village Phone Company aims to market the Village Phone concept at provincial and rural areas through a new channel to market of partnering with microfinance institutions.

The rural telecom market provides a viable business opportunity for the Cambodia Village Phone Company to meet growing customer’s needs. By providing new opportunities for micro-entrepreneurs, expanding the market to increase telecommunications outreach and engaging business partners, the Cambodia Village Phone Company aims to improve return on investment for all players within the value chain. It is believed the Village Phone can significantly improve rural livelihoods in Cambodia whilst operating a profitable business.