The Groupe Spécial Mobile Association (GSMA) has launched a global coalition to lower the cost of mobile phones in low- and middle-income countries in Africa and Asia.
This initiative aims to make mobile phones more affordable for millions of people who currently cannot access mobile internet services due to high device costs.
The coalition includes major telecom operators like MTN Group, Orange, Vodafone, and Ethio Telecom, as well as leading phone manufacturers such as Huawei, ZTE, and Honor. Financial institutions like the International Finance Corporation (IFC) and the World Bank are also part of the coalition.
GSMA highlighted the urgent need for affordable mobile devices, noting that approximately 3 billion people worldwide live in areas with mobile broadband coverage but do not use mobile internet services.
“In LMICs, mobile broadband remains the primary, and often the only way, of accessing the internet. Despite widespread awareness of digital services, one of the main barriers remains the affordability and accessibility of internet-capable devices,” GSMA stated.
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The organization pointed out that in low- and middle-income countries, entry-level mobile devices typically consume 16% of monthly incomes on average, with this figure rising to 44% for the poorest 40% and 55% for the poorest 20% of the population.
Handset affordability has long been a challenge, but GSMA believes that by working together, the coalition can develop strategies to make entry-level smartphones more accessible and close the usage gap.
“The affordability barrier is not just about the cost of purchasing a handset. It is also impacted by other factors such as willingness to pay, awareness, digital skills, access to financing, and social norms,” GSMA explained.
The organization also called on governments to remove import duties and sector-specific taxes, which can increase the cost of a device by up to 30%. GSMA recommended innovative device financing schemes by public and private organizations and emphasized the importance of considering consumer needs and preferences to increase the willingness to pay for devices.
In Nigeria, the National Broadband Plan (NBP 2020-2025) aimed to establish a smartphone assembly plant by 2023 to reduce the price of entry-level smartphones to as low as N18,000. However, the country still lacks a local smartphone assembly plant, and the cost of smartphones has surged due to the devaluation of the Naira, with the cheapest smartphone now selling for about N65,000.