A global push to make smartphones more affordable is gaining momentum with the launch of a new initiative by the GSM Association (GSMA) and Africa’s leading mobile network operators.
The move seeks to break one of the biggest barriers to digital inclusion — the high cost of internet-capable handsets that keeps billions offline.
The coalition’s target is bold but simple: make a reliable 4G smartphone available for as low as ₦58,600 ($40). For millions across Nigeria, including Africa, Asia, and other low- and middle-income countries (LMICs), this could be the bridge to the digital economy.
South Africa’s MTN Group which owns MTN Nigeria and Airtel, owners of Airtel Nigeria, are part of the six operators that have joined forces with GSMA on the landmark drive to make smartphones affordable.
At the centre of this movement is the GSMA Handset Affordability Coalition, a global partnership uniting mobile operators, original equipment manufacturers (OEMs), development financiers, and policymakers to drive innovative solutions for affordable devices. The initiative reflects the mobile industry’s recognition that affordable connectivity must start with affordable handsets.
GSMA: 3 billion people offline despite coverage
According to the GSMA, an estimated 3 billion people—around 38% of the global population—live in areas covered by mobile broadband networks but do not use the internet. This paradox, known as the “usage gap,” underscores a key truth: availability of network infrastructure alone does not guarantee digital participation.
In much of Sub-Saharan Africa and parts of Asia, the interest group of mobile operators says, mobile broadband is the only way most people can access the internet, yet the cost of entry-level smartphones remains prohibitive.
The GSMA Intelligence research shows that in LMICs, the cost of an entry-level smartphone represents 16% of average monthly income, rising to 44% for the poorest 40% and 55% for the poorest 20% of the population. For many, buying a smartphone could mean sacrificing basic needs for months.
In Nigeria, where over 95% of adults own mobile phones, affordability still defines the divide between connectivity and exclusion. Millions remain locked out of internet access because their devices can only handle voice and SMS, not data-intensive services.
Meanwhile, Nigeria remains Africa’s largest mobile phone market with official market data indicating that the country now has 171,566,422 phone connections, 140,328,196 internet subscriptions and 105,158,577 broadband connections as of August, 2025.
Introducing the $40 smartphone standard
The GSMA, working with six of Africa’s largest operators: Airtel, Axian Telecom, Ethio Telecom, MTN, Orange, and Vodacom, has proposed a new baseline specification for entry-level 4G smartphones priced at around $40.
This proposed benchmark, announced today at MWC Kigali 2025, outlines minimum technical standards covering RAM, storage, battery life, display size, and camera performance to ensure that even low-cost smartphones offer reliability and usability comparable to mid-tier models.
The GSMA says this move is not about producing “cheap” devices but affordable, quality smartphones that last, update reliably, and give users a dignified digital experience.
“Access to a smartphone is not a luxury—it is a lifeline to essential services, income opportunities, and participation in the digital economy,” said Vivek Badrinath, Director General of the GSMA. “By uniting around a shared vision for affordable 4G devices, Africa’s leading operators and the GSMA are sending a powerful signal to manufacturers and policymakers.”
Smartphone affordability has long been one of the last frontiers in achieving digital inclusion. While network operators have invested billions in expanding 3G, 4G, and now 5G coverage, the device barrier continues to exclude millions from participating in online education, e-health, mobile banking, and digital trade.
The GSMA’s latest State of Mobile Internet Connectivity Report reveals that smartphone affordability is now the single largest obstacle to mobile internet adoption in Sub-Saharan Africa.
GSMA Intelligence estimates that if the cost of smartphones dropped to around $40, 20 million additional people in the region could come online. A $30 device, by contrast, could enable up to 50 million new users to access the internet.
Affordable smartphones could reshape economies. The GSMA projects that closing the usage gap in LMICs between 2023 and 2030 could generate $3.5 trillion in additional global GDP. In Sub-Saharan Africa alone, the mobile ecosystem supports 1.5 million direct jobs and 2.2 million indirect jobs, with 5G expected to add $10 billion to the regional economy by 2030.
The implications are particularly striking in Nigeria, where youth-driven innovation is transforming industries such as fintech, agritech, and digital media. Yet, for many aspiring entrepreneurs, developers, and learners, the first obstacle is still a smartphone they can afford.
From feature phones to digital futures
For millions across Africa, feature phones remain their main communication tool. These devices support basic calls and SMS but limit users’ access to mobile apps, video learning, or financial services.
The rise of mobile money—pioneered in Africa through platforms like M-Pesa, MTN MoMo, OPay, and PalmPay—has shown how access to mobile services can transform livelihoods. Yet most of these services still rely on USSD (text-based) transactions, reflecting the dominance of non-smartphone devices.
The GSMA’s push for affordable 4G smartphones could shift this paradigm. By connecting new users to app-based services, low-cost smartphones could accelerate adoption of e-commerce, insurance, healthcare, education, and agricultural information systems.
The cost barrier and tax debate
Even as handset makers work to lower production costs, the GSMA notes that taxation remains a major obstacle. In some African countries, import duties and VAT can inflate device prices by more than 30%, effectively pushing affordable devices out of reach for millions.
The GSMA and its partners are calling on governments across Africa to eliminate taxes on entry-level smartphones priced below $100.
South Africa’s 2025 decision to remove certain levies on budget handsets is now cited as a model policy. The industry hopes Nigeria and other African governments will replicate this, recognising affordable devices as catalysts for inclusion, not luxury goods.
“Tax reforms on low-cost devices are not giveaways,” the GSMA said in its policy brief. “They are smart investments in productivity and inclusion.”
Coalition model: Partnerships for inclusion
The GSMA Handset Affordability Coalition is not a typical industry body. It unites actors from across the digital value chain — mobile operators, OEMs, financing institutions, and international development organisations — to pool expertise and drive practical solutions.
Members of the coalition include mobile operators such as MTN, Airtel, Orange, Vodacom, Axian Telecom, and Ethio Telecom. It also includes device manufacturers and component suppliers who can build cost-efficient 4G models. The coalition also has development financiers like the World Bank and regional investment funds that can support handset financing schemes as well as International organisations that can guide policy harmonisation and research.
The coalition’s work will be coordinated by the GSMA, which aims to “facilitate and inspire collaboration” and unlock partnerships that bring down the cost of access.
Financing as a bridge to ownership
Beyond cutting costs, the GSMA’s research highlights the potential of device financing and micro-lending schemes as practical bridges to ownership.
For many low-income users, pay-as-you-go financing models—where users pay small daily or weekly fees until the device is fully owned—have already shown success in markets such as Kenya and Uganda.
By combining these financing models with the proposed $40 device standard, the GSMA believes it can accelerate first-time smartphone ownership while ensuring users build credit and digital skills along the way.
Nigeria: The ground zero for affordability challenges
Nigeria, home to Africa’s largest population and one of its most dynamic tech ecosystems, offers a vivid illustration of the stakes.
With a broadband penetration rate of around 48.81% and over 140 million mobile internet users, the potential for inclusion is vast—but so is the challenge.
A mid-tier smartphone in Nigeria currently costs between ₦70,000 and ₦120,000 ($50–$90), beyond the reach of millions living below the national poverty line.
A reliable $40 smartphone could unlock access for tens of millions of Nigerians and significantly boost sectors such as fintech, e-learning, and agriculture, which rely on mobile-based platforms.
Smartphones as tools for empowerment
The GSMA sees smartphone access as a social and economic imperative. In LMICs, mobile connectivity often serves as the gateway to essential public and private services, from mobile banking to telemedicine, from weather alerts for farmers to virtual classrooms for students.
Every additional connected user expands the potential of the digital economy and contributes to national GDP growth. Conversely, those left offline are increasingly excluded from economic, civic, and social participation.
The GSMA will now lead consultations with handset manufacturers, component makers, and chipset suppliers to finalise the proposed technical standards for the affordable 4G smartphone.
Areas of focus include:
- Battery life to ensure longevity in regions with limited electricity access.
- Software updates and security patches to protect users from vulnerabilities.
- Durability testing for harsh environments.
- Optimised operating systems that run efficiently on lower memory hardware.
Once standards are finalised, the coalition plans to launch pilot device production and distribution programs in select African and Asian markets. Financing institutions and NGOs will be engaged to ensure equitable distribution to low-income communities.
The $40 question
The idea of a $40 smartphone has sparked optimism — but also scepticism. Can such a low-cost device deliver quality and reliability without cutting corners?
GSMA officials insist that lessons from previous attempts to produce ultra-cheap phones have informed this initiative. Unlike earlier models that compromised usability, the new standard aims for balance between affordability and functionality, using efficient manufacturing and open-source software optimisation to lower costs without degrading experience.
Moreover, economies of scale—driven by collective procurement from major operators—could make the $40 target feasible by reducing per-unit production and logistics costs.
While Africa remains the focus, the GSMA notes that affordability challenges extend across Asia, Latin America, and parts of Eastern Europe.
Globally, bridging the usage gap is becoming central to the United Nations’ Sustainable Development Goals (SDGs), particularly Goal 9 (Industry, Innovation, and Infrastructure) and Goal 10 (Reduced Inequalities).
The Handset Affordability Coalition could thus serve as a global blueprint for other regions, encouraging multi-stakeholder partnerships to tackle the affordability barrier at scale.
The GSMA’s message to governments and manufacturers is clear: inclusion requires collaboration. Policymakers must lower taxes, manufacturers must innovate on cost, and network operators must align around distribution and financing.
“No single player can solve handset affordability alone,” Vivek Badrinath adds. “But together, we can create a pathway for millions to participate in the digital future.”
For now, the $40 smartphone represents more than a price point—it symbolises a new phase in global digital equity.
If successful, it could usher in a wave of new internet users across Africa and beyond, transforming digital access from privilege to right.
For Nigeria and the wider continent, it could mean millions more voices joining the digital conversation—students studying online, farmers accessing weather data, small merchants transacting globally, and families staying connected.
As GSMA officials put it, “Every affordable smartphone sold is a step towards empowerment.”
And with a $40 handset on the horizon, that step may soon become a leap.
Home
