The Groupe Special Mobile Association (GSMA), a global body representing mobile operators, has established a coalition to reduce mobile phone costs in low- and middle-income countries (LMICs) in Africa and Asia. This coalition includes telecommunications operators such as MTN Group, Orange, Vodafone, and Ethio Telecom, alongside device manufacturers like Huawei, ZTE, and Honor. Financial institutions like the International Finance Corporation (IFC) and the World Bank are also part of this initiative.
In a statement, the GSMA highlighted that the coalition, which includes ecosystem players such as Google, Intelligra, and M-Kopa, aims to make entry-level smartphones more affordable. The organization identified device affordability as a significant barrier, noting that about 3 billion people, or 38% of the global population, live in areas with mobile broadband coverage but do not use mobile internet services. This “usage gap”limits access to essential information and services.
In LMICs, mobile broadband is often the primary or only means of internet access. Despite the widespread availability of digital services, the high cost and limited accessibility of internet-capable devices remain major obstacles. According to the GSMA, entry-level mobile devices typically consume 16% of monthly incomes on average in these regions, with the figure rising to 44% for the poorest 40% and 55% for the poorest 20% of the population.
Handset affordability has been a longstanding issue, with companies striving for years to lower the cost of entry-level devices. The new coalition aims to develop strategies and implement ideas to enhance handset affordability and close the usage gap. Additionally, the GSMA emphasized the role of governments in removing import duties and sector-specific taxes, which can increase device costs by up to 30%.
“The affordability barrier is not just about the cost of purchasing a handset,”the GSMA noted. “It is also impacted by other factors such as willingness to pay, awareness, digital skills, access to financing, and social norms.”The organization recommended innovative device financing schemes from both public and private entities and urged device manufacturers to consider consumer needs, preferences, and perceived value to increase willingness to pay.
The coalition’s efforts aim to bridge the digital divide by making mobile internet services more accessible to underserved populations. By addressing both the cost and the broader barriers to mobile device usage, this initiative seeks to enhance digital inclusion and empower individuals with greater access to information and services.
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