Tuesday, June 3, 2025
The Lagos Today
  • Login
No Result
View All Result
No Result
View All Result
The Lagos Today
No Result
View All Result
Home Business

GSMA Forms Global Coalition to Reduce Cost of Mobile Phones in Africa and Asia

by Julius Afolalu
July 17, 2024
in Business, Tech
Reading Time: 3 mins read
0
0
GSMA Forms Global Coalition to Reduce Cost of Mobile Phones in Africa and Asia
Share on FacebookShare on Twitter

Groupe Spécial Mobile Association (GSMA), the umbrella body of mobile operators globally, has formed a global coalition involving telecommunications operators, phone manufacturers, and financial institutions, among others to bring down the cost of mobile phones in low- and middle- income countries (LMICs) in Africa and Asia. 

Members of the coalition include telecom operators MTN Group, Orange, Vodafone, Ethio Telecom, and device makers such as Huawei, ZTE, Honor, among others.

Financial institutions members of the coalition include the International Finance Corporation (IFC) and the World Bank. 

According to a statement from the GSMA, the coalition which also has device ecosystem players like Google, Intelligra, and M-Kopa, among others, would work together to bring down the cost of entry-level smartphones.  

Mobile usage gap  

While citing device affordability as a major issue, GSMA noted that approximately 3 billion people, or 38% of the global population currently live in an area covered by mobile broadband but do not use mobile internet services. It described this as the usage gap, which deprives individuals of access to essential information and 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.  

“In LMICs, 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,” the GSMA stated. 

According to the body, handset affordability is not a new issue as companies have been working for years to bring down the cost of entry-level devices. It, however, noted that by working together, the new coalition would spearhead ideas and strategies to improve handset affordability and close the usage gap. 

Other stakeholders’ role 

Meanwhile, in addition to the efforts, GSMA said governments would also need to remove import duties and 2 sector-specific taxes, which can increase the cost of a device by up to 30%.  

“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, among others,” it added. 

GSMA also recommended innovative device financing schemes by public and private organisations, adding that device manufacturers must consider consumer needs, preferences, and perceived value to increase willingness to pay. 

What you should know 

Recognising the high cost of smartphones as one of the access barriers to broadband in the country, Nigeria in its National Broadband Plan (NBP 2020-2025) developed by key experts in the ICT industry, had set a target of having, at least, one smartphone assembly plant by 2023.  

This was to ensure the price of an entry-level smartphone in the country could be as low as N18,000. 

However, the country currently has no local smartphone assembly plant, while costs of smartphones in the country have skyrocketed as a result of the Naira devaluation. The cheapest smartphone in the market currently sells for about N65,000.

Share this:

  • Facebook
  • X

Like this:

Like Loading...
Tags: AfricaAsiaCost of Mobile Phones in Africa and AsiaGroupe Spécial Mobile Association (GSMA)International Finance Corporation (IFC)Mobile phonesWorld Bank
Previous Post

UNICEF Urges Adoption of Digital Birth Registration in Nigeria

Next Post

Cholera Outbreak: 3,623 Suspected Cases, 103 Deaths Recorded Across 34 States and FCT

Julius Afolalu

Julius Afolalu

Related Posts

NjiaPay: South African Fintech Startup Reshaping Payment Solutions for African Businesses

NjiaPay: South African Fintech Startup Reshaping Payment Solutions for African Businesses

by Iyanu Ale
May 5, 2025
0

In a move poised to transform how African businesses manage financial transactions, South African fintech startup NjiaPay is streamlining payments...

Ghana’s Kofa Secures $8.1M Pre-Series A Funding to Drive Clean Energy Access Across Urban Africa

Ghana’s Kofa Secures $8.1M Pre-Series A Funding to Drive Clean Energy Access Across Urban Africa

by Iyanu Ale
May 2, 2025
0

Ghanaian energy tech startup Kofa has successfully raised $8.1 million in a pre-Series A funding round to scale its AI-powered...

Next Post
Lagos Cholera Outbreak: Death Toll Rises to 29, 579 Suspected Cases Recorded

Cholera Outbreak: 3,623 Suspected Cases, 103 Deaths Recorded Across 34 States and FCT

Please login to join discussion

Recommended

Ebute Metta Building Collapse Update: 10 Dead, 24 Rescued in the Rubble

Ebute Metta Building Collapse Update: 10 Dead, 24 Rescued in the Rubble

3 years ago
Trailer Damages Three Flyover Bridges Along Lagos-Ibadan Expressway

Trailer Damages Three Flyover Bridges Along Lagos-Ibadan Expressway

4 years ago

Popular News

    Connect with us

    Tags

    #EndSARS 2023 Elections 2023 polls 2023 Presidency ACCIDENT Africa All progressives Congress APC Asiwaju Bola Tinubu Babajide Sanwo-Olu CBN Central Bank of NIgeria Central Bank of Nigeria (CBN) Coronavirus pandemic Covid-19 Covid-19 in Lagos Covid-19 in Nigeria Covid-19 Vaccine Cryptocurrency Economic and Financial Crimes Commission EFCC Federal Government Federal Government of Nigeria Fraud Gov. Sanwo-Olu House of Representatives Lagos-Ibadan expressway Lagos state Lagos State Government Lagos State House of Assembly Lagos State Police command Muhammadu Buhari Murder Naira NDLEA Nigeria Nigeria Customs Service Nigerian Economy Nigeria Police Force Rape Strike action TECH UK United Kingdom US

    News

    Opinion

    © 2020 The Lagos Today - Nkali.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    No Result
    View All Result

    © 2020 The Lagos Today - Nkali.

    %d