The cost of a smartphone stands between mobile coverage and internet access for hundreds of millions of Africans. This message presented a powerful counterpoint to cutting edge technologies unveiled last week in Barcelona during Mobile World Congress (MWC), the largest mobile technologies event in the world.
“Coverage without the device is exclusion,” said Marina Madale, group executive for sustainability and shared value at MTN, speaking during the Tech Cares Forum, a digital inclusion event hosted by Huawei at MWC. “Nothing is possible without the device.”
Her comments came as the GSMA, organiser of MWC and the global association representing mobile network operators, announced a major initiative aimed directly at that barrier. The organisation launched a Handset Affordability Coalition, which laid out plans to pilot smartphones priced at about $40 in six African markets: the Democratic Republic of Congo, Ethiopia, Nigeria, Rwanda, Tanzania and Uganda.
The coalition brings together operators MTN, Airtel, Orange, Vodacom, Axian Telecom and Ethio Telecom, along with handset manufacturers and development organisations. Their shared objective centres on narrowing the gap between mobile network coverage and actual internet use.
Operators across the continent have spent years expanding network infrastructure into rural regions. Towers now serve areas that once had no signal at all. The economics of the handset has emerged as the next obstacle.
Vivek Badrinath, director general of the GSMA, said: “Affordable smartphones enable digital and financial inclusion, economic opportunity and innovation. 3.1 billion people have mobile coverage but are not connected to the mobile internet.
“In a global context of rising memory costs, governments have an important role in bridging the usage gap. Removing taxes and import duties on entry-level 4G smartphones will be critical to achieving scale.”
Madale agreed: “In many communities, the network is there. “The signal is there. But the income is not there. The device is shared in a household. Electricity is unstable. Data becomes a luxury.”
The infrastructure challenge has forced operators to adopt alternative approaches to rural connectivity.
“We simplify fibre, and we use microwave, and we use solar panel for electricity,” she said. “This type can have a transmission distance of 30 kilometres. That’s how we reach farmers and villages in remote areas.”
Infrastructure therefore extends coverage, but the device determines who can use it.
Madale argued that affordability must be understood more broadly than the purchase price alone.
“Affordability is not only about the initial cost of the handset. It is about the total cost of ownership. It is about charging. It is about repairs. It is about replacing the device when it is lost or broken. If we want inclusion, we must look at the entire ecosystem around that device.”
The GSMA coalition hopes to address that barrier through scale. By aligning demand across several operators, the group aims to encourage manufacturers to design smartphones specifically for entry-level markets.
Those devices must still meet minimum requirements for modern connectivity. Battery life, memory and processing capability remain key considerations, particularly in regions where electricity supply may be inconsistent.
The coalition has worked with operators and manufacturers to define baseline specifications for these smartphones. The devices must support 4G connectivity, run mainstream applications and deliver performance that allows users to access messaging platforms, digital payments and basic online services.
Reaching the $40 price point depends on multiple factors across the supply chain. Manufacturing scale reduces component costs, while partnerships between operators and handset makers create predictable demand for the devices.
At the Huawei stand at MWC, where it displayed its current range of cutting-edge smartphones, the company also demonstrated a solution to the affordability challenge: a cloud-based smartphone concept designed to expand access to digital services on low-cost hardware. Known as Cloud Phone 2.0, the platform was initially developed through a partnership between Huawei, MTN Zambia and Muen Network. It has also been launched in Kenya, with handsets priced as low as US$20.
Five “Simplified Android” phones were on display, each supporting Wi-Fi and offering dual SIM support for 2G, 3G and 4G networks. They are capable of cloud-based short-form video streaming, cloud gaming optimised for 4G networks, and secure cloud storage for file transfers. The service is bundled with low-cost data packages aimed at helping users move from legacy 2G and 3G devices to smartphones connected to modern mobile networks.
For operators, smartphone adoption opens access to the broader digital economy. Financial services, education platforms, e-commerce and government services increasingly depend on smartphone interfaces.
Mobile banking services, agricultural information platforms and online learning tools have already begun to reshape daily life across parts of the continent. Each service relies on a smartphone as the primary gateway to the digital world.
The discussion at the Tech Cares Forum expanded beyond infrastructure to the wider meaning of digital inclusion. Sylvia Cadena, senior gender and youth advisor to the secretary-general of the International Telecommunication Union, said there was a shift in how connectivity progress is measured.
“The shift is from getting people online to ensuring that people are thriving online,” she said.
Ultimately, advanced technologies like artificial intelligence come into play, said Madale.
“The African continent has over 100 languages. AI can act as an online translator for communities that are not operating in dominant languages.
“If AI systems are trained mainly on data from outside our markets, they will not reflect our realities. Inclusion in AI development means inclusion in the data, inclusion in the teams, inclusion in the governance.”
The GSMA is leading an AI Language Models Initiative to advance locally relevant AI models. The Africa Pavilion at MWC showcased a live demonstration of the first open Swahili reasoning model, in collaboration with MeetKai Zambia. It is capable of browsing and translating online content and is aimed at reducing language barriers to digital services.
The initiative to develop $40 smartphones therefore addresses more than the hardware price point. It determines who enters the digital economy and who remains outside it.
Said Madale: “If people do not have the device, they cannot benefit from connectivity, they cannot benefit from AI, they cannot benefit from digital services. Inclusion begins with access that works for the individual.”
* Arthur Goldstuck is CEO of World Wide Worx, editor-in-chief of Gadget.co.za, and author of The Hitchhiker’s Guide to AI – The African Edge.