Purpose: The study examined the usage of village phone and living standards in the rural households in Nakaseke district in Uganda. This was prompted by the introduction of the village phones especially the Mobile Technology Network village phone in the rural areas.
Design/methodology/approach: The study used a cross-sectional survey design utilizing descriptive and correlation methods to examine the usage of village phone on living standards. Statistical package for social sciences was used in applying spearman’s correlation coefficient which was used to determine the relationship between the study variables.
Findings: Findings revealed a significant positive relationship between usage of village phone and living standards. The more the usage of village phone, the better the living standards. The more access to information and communication one has to gather with improved social capital levels, the lower the transaction costs incurred.
Research limitations/implications: The research covered one District in central region among the four regions of Uganda due to limited funds. Future research should cover private mobile phone usage and livings standards indices. Extend the research to other regions of Uganda for comparison purposes.
Practical and Policy implications: Enables policy makers in developing policy relating to communication and access to information as a tool to eradicate poverty and meet the millennium goal on poverty by 2015, it will help investors in the areas of telecommunication to understand the effect of telecommunication in the rural areas for purposes of planning their investments and identification of business opportunities.
Social implications: This usage of village phones will increase communication and access to information, and transform society by improving living standards.
Originality/value: The study adds knowledge by increasing the understanding of the socio – economic effects and role of telecommunication usage for rural development in Uganda.
Keywords: Village phone, living standards.