The GSMA, the World Bank Group, and a coalition of international organisations and industry leaders have joined forces to tackle a critical barrier to digital inclusion: handset affordability. Recognising that the cost of mobile devices often hinders access to the digital world for low-income populations, this new initiative aims to drive down prices and make internet-enabled phones more accessible.
The Handset Affordability Coalition, as it is known, will explore a range of strategies to address this issue. These include innovative financing models, bulk procurement initiatives, and policy advocacy to reduce import duties and taxes on mobile devices. By working together, the coalition partners aim to create a more favorable environment for affordable handsets to proliferate in underserved markets.
The “usage gap” – the discrepancy between those who have access to the internet and those who actively use it – is a pressing concern in many developing countries. According to GSMA estimates, roughly three billion people worldwide are held back from fully participating in the digital economy due to the high cost of devices. The Handset Affordability Coalition seeks to bridge this gap by ensuring that everyone, regardless of income level, can access the tools and opportunities offered by the digital age.
The coalition’s efforts are particularly crucial in regions like Sub-Saharan Africa, where mobile penetration rates are high but smartphone adoption lags due to affordability constraints. By making smartphones more affordable, the coalition aims to unlock the vast potential of mobile internet for economic growth, education, healthcare, and social development in these regions.
The partnership between the GSMA and the World Bank Group brings together the expertise of two influential organisations. The GSMA, representing mobile network operators worldwide, has a deep understanding of the mobile ecosystem and the challenges faced by underserved populations. The World Bank Group, with its focus on poverty reduction and economic development, brings financial resources and policy expertise to the table.
The coalition’s approach is holistic, recognizing that handset affordability is a multifaceted issue that requires a multi-pronged solution. By addressing the various barriers to handset ownership, such as high import duties, limited access to financing, and lack of awareness, the coalition aims to create a sustainable ecosystem where affordable handsets are readily available to all.
The Handset Affordability Coalition is a significant step towards a more inclusive digital future. By ensuring that everyone has the opportunity to access the internet and its benefits, the coalition is not only driving economic growth but also empowering individuals and communities to reach their full potential.
