The GSMA, the World Bank and key members of the telecommunications ecosystem today announced a new coalition to improve phone affordability for lower-income populations, including sub-Saharan Africa.
Members of the Handset Affordability Coalition include major global mobile operators, suppliers, handset ecosystem players, international organizations and funding agencies such as the World Bank Group, the International Telecommunication Union (ITU), Smart Africa and the Edison Alliance of the World Economic Forum.
The coalition will work together to improve access to affordable internet-enabled devices to close the “usage gap,” which prevents an estimated 3 billion people worldwide from maximizing their potential in the global digital economy.
The GSMA defines the usage gap as people who do not use the mobile Internet despite living in an area covered by a mobile network. Instead, the coverage gap is people living in areas with no mobile broadband coverage at all.
Members of the Coalition they include African telcos MTN, Orange, Axian Telecom, Ethio Telecom and Vodafone (which operates in Africa through subsidiary Vodacom).
Device hardware makers include Honor, Huawei, ZTE and MobiWire, while ecosystem players such as Google, KaiOS, Intelligra and M-Kopa are also on board.
Accessibility for all income levels
Mobile remains the main – and often the only – way people in low- and middle-income countries (LMICs) access the internet, accounting for 84% of broadband connections in 2023, the GSMA said in a statement.
However, 3 billion people (38% of the world’s population) live in areas covered by mobile internet but do not use it due to barriers such as digital literacy and skills, lack of relevant content, online safety and access. Handset affordability is often identified as the most significant barrier to users getting online.
The new coalition will evaluate multiple “leverages” to lower the cost of entry into the digital economy for low-income populations, with a particular focus on LMICs and areas where device affordability is the highest barrier to getting online, such as sub-Saharan Africa Africa and South Asia.
The GSMA pointed out that Africans are affected by issues such as the high cost of phones β which can cost 30% of their monthly income β which hinders access to critical services and economic opportunities, exacerbating the digital divide.
If smartphones could retail for around $20, an additional 270 million Africans could buy phones, potentially reducing the usage gap by 23 percent.
“Mobile has helped billions of people around the world play an active role in our increasingly digital world, but the cost of entry can still be too high for many on low incomes. Together with global mobile operators and their support of Together with the World Bank Group and other key members of the coalition, we are determined to act on this issue,” GSMA director general Mats Granryd said in a statement about the coalition.
“By building creative solutions to get the mobile internet into the hands of those who need it most, we believe we can make real strides towards closing the usage gap and help millions more maximize their internet potential,” he added.
By exploring new solutions, including βrisk-averseβ financing mechanisms, with the support of the World Bank Group, the coalition will strengthen and complement ongoing efforts to expand digital access and affordability.
ITU Secretary General Doreen Bogdan-Martin said that in an age of unimaginable digital opportunities, devices are still out of reach for too many.
“With the Commission on Broadband Accessibility’s 2025 target on the horizon, this new global coalition is an excellent complement to the work of the Commission’s Smartphone Access Task Force. It has the power to accelerate affordability and bring us one step closer near universal meaningful connectivity, a cornerstone of ITU’s mission and our digital future,” added Bogdan-Martin.
![ITU Secretary General Doreen Bogdan-Martin speaking at MWC Kigali 2023 in Rwanda. (Source: GSMA)](https://img.lightreading.com/connectingafrica/2023/10/786594/963.jpg)
![ITU Secretary General Doreen Bogdan-Martin speaking at MWC Kigali 2023 in Rwanda. (Source: GSMA)](https://img.lightreading.com/connectingafrica/2023/10/786594/963.jpg )
ITU Secretary General Doreen Bogdan-Martin speaking at MWC Kigali 2023 in Rwanda.
(Source: GSMA)
“Making internet-connected devices more affordable is critical to accelerating digitization in developing countries and ensuring that no one is left behind,” said Guangzhe Chen, vice president for infrastructure at the World Bank.
“We’ve seen the power of digital technologies to unlock growth and job creation and ease access to education and health services, but people must first connect to make this a reality. This coalition brings together key players across industry and development community to help bring this ambition to life,β Chen continued.
Going forward, the GSMA said it will continue to facilitate close collaboration between coalition members to share lessons and evaluate and develop tailored, innovative models that can effectively close the usage gap.
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*Top image source: GSMA.
β Paula Gilbert, Editor, Connecting Africa