Kampala — MTN Uganda and the Grameen Foundation USA have announced an initiative to extend telephone access to the rural areas.

The project, the MTN villagePhone, will be launched on Monday in Kayunga district.

MTN publicist Philip Besiimire said the phone access will create opportunities for the rural poor.

"These villagePhone businesses can be established in areas where electricity is unavailable and where the MTN network can only be accessed with a booster," he said.

The concept was developed in Bangladesh. Uganda is the first country in which it is being replicated.

According to Besiimire, the MTN villagePhone provides special airtime rates to the village phone operators who provide affordable telecommunications services to the people.

"People are now able to make a call without travelling to the nearest town," he said. "They can simply go to their community village phone operator who serves and supports the community by making affordable communications services available."

There are currently more than 100 MTN villagePhone operators in 19 districts.

The Grameen Foundation USA is a non-profit organisation based in Washington, D.C.

It empowers the world's poorest out of poverty through access to financial services and information.

In Uganda, it is supported by the World Bank, infoDev, IFC, AED and individuals.