GSMA: Handset Affordability Coalition & Smartphones

A new global coalition will advance solutions to increase handset affordability for the world’s poorest populations has been announced by the GSMA. Members include mobile operators, vendors, device ecosystem players, international organisations and financing institutions, including the World Bank Group, the ITU and the WEF Edison Alliance. 

The coalition will work towards improving access to affordable internet-enabled devices, in order to close the ‘Usage Gap’, which prevents three billion people in the world, today, from reaching their potential in the global digital economy.

Global coalition seeks to make mobile internet accessible for low-income populations

Mobile remains the primary way those living in Low- and Middle-Income Countries access the internet. Yet 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 concerns 
• Access. 

Handset affordability is often recognised as the most significant barrier to get people online.

The coalition will investigate ways to reduce the cost of entry into the digital economy, specifically for low-income populations. There will be a strong focus on LMICs and areas where handset affordability presents the highest barrier to getting online. 

The coalition will build upon ongoing efforts to expand digital access and affordability, by exploring new solutions including ‘de-risking’ financing mechanisms, with the support of the World Bank Group. 

The GSMA will continue to facilitate collaboration between coalition members to share learnings, assess results and deploy models that can narrow the usage gap.

Handset affordability coalition aims to break barriers in global mobile adoption

For the global mobile sector, the Handset Affordability Coalition offers a tangible commitment from the industry towards solving the most substantial barrier to mobile adoption worldwide. 

This move is backed by the GSMA’s Breaking Barriers campaign, which calls for greater focus and collaboration between governments and the mobile industry to address the multiple challenges holding back individuals from getting online.

“Mobile has helped billions of people worldwide to 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 the support of the World Bank Group and other key coalition members, we’re determined to act on this issue,” said Mats Granryd, Director General of the GSMA. “By building creative solutions to bring mobile internet into the hands of those who need it the most, we believe we can make real strides towards closing the Usage Gap and help millions more maximise their potential by getting online.”

Making internet connected devices more affordable is critical to accelerating digitalisation in developing countries and ensuring no one is left behind, argues Guangzhe Chen, Vice President for Infrastructure from the World Bank. 

“We’ve seen the power of digital technologies to unlock growth and job creation and to ease access to education and health services, but people must first be connected to make this a reality,” said Guangzhe. “This coalition brings together key players across industry and the development community to help bring this aspiration to life.”

In an age of unimaginable digital opportunities, devices are still out of reach for too many, says Doreen Bogdan-Martin, Secretary General of the ITU, which is something that must change. 

“With the 2025 Broadband Commission affordability target on the horizon, 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 affordability and bring us one step closer to universal meaningful connectivity, a cornerstone of ITU’s mission and our digital future.”

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