Handset Affordability Coalition to support lower cost smartphones for LMICs

07 August 2024

The GSMA has announced a new global coalition that will deliver innovative solutions to make mobile phones more affordable for some of the world’s poorest populations.

Members include mobile operators, vendors, device ecosystem players, international organizations and financial institutions, including the World Bank Group, ITU and the WEF’s Edison Alliance. The coalition will work together to improve access to affordable internet devices to close the ‘digital divide,’ which prevents an estimated three billion people worldwide from maximizing their potential in the global digital economy.

Mobile phones remain the primary – and often the only – way people in low- and middle-income countries (LMICs) access the internet, accounting for 84% of broadband connections by 2023. Yet three billion people – 38% of the world’s population – live in areas with mobile internet coverage but are not using it due to barriers including digital literacy and skills, lack of relevant content, online safety and access. Device accessibility is often identified as the most significant barrier to people getting online.

The new coalition will explore multiple ‘levers’ to reduce the price at which low-income populations access the digital economy, with a particular focus on low-income countries and regions where the price of phones is the main barrier to accessing the internet, such as in sub-Saharan Africa and South Asia. By exploring new solutions, including ‘risk-free’ financing mechanisms, with support from the World Bank Group, the coalition will strengthen and complement current efforts to expand digital access and make it more affordable.

Going forward, the GSMA will continue to facilitate close collaboration among coalition members to share experiences, evaluate and deploy suitable innovative models that can effectively reduce the usage gap.

“Mobile has enabled billions of people around the world to play an active role in our increasingly digital world, but the price to access it is still too high for many people on low incomes. Together with the world’s mobile operators and with the support of the World Bank Group and other key members of the coalition, we are determined to take action on this issue,” said Mats Granryd, director general of the GSMA. “By developing creative solutions to bring mobile internet to those who need it most, we believe we can make real progress in closing the usage gap and helping millions of people maximize their potential by getting connected.”

“Making internet-connected devices more affordable is essential to accelerating digitalization in developing countries and ensuring that no one is left behind. We have seen the power of digital technologies to unlock growth and job creation and to facilitate access to education and health services, but people must first be connected for this to become a reality. This coalition brings together key players from the sector and the development community to help make this aspiration a reality,” said Guangzhe Chen, World Bank group vice president for infrastructure.

In this age of unimaginable digital opportunity, smartphones are still out of reach for too many people. With the Broadband Commission’s 2025 accessibility goal in mind, this new global coalition is an excellent complement to the work of the Commission’s Working Group on Smartphone Access. It has the power to accelerate affordable access and bring us one step closer to meaningful universal connectivity, a cornerstone of ITU’s mission and our digital future,” said Doreen Bogdan-Martin, ITU secretary-general.

Today’s launch of the Handset Affordability Coalition represents a tangible commitment from the industry to tackle the most significant barrier to mobile adoption worldwide, and is supported by the GSMA’s Breaking Barriers campaign.