In a bid to increase usage of their mobile data network and grow the number of people accessing the internet, Vodacom and MTN have joined their counterparts in Africa to call for smartphones costing less than R700.
Making devices more accessible is good for consumers, while mobile providers will benefit from the volume of data services that flow through their networks, ultimately adding to their profits.
As operators build their portfolios of digital messaging, streaming, financial services and gaming, consumers with more devices give these platforms more room to grow.
Last week, the GSM Association (GSMA), together with six of Africa’s largest mobile operators — Airtel, Axian Telecom, Ethio Telecom, MTN, Orange and Vodacom — proposed a baseline set of minimum requirements for an affordable entry-level 4G smartphone. The GSMA is a nonprofit trade organisation that represents the interests of more than 1,000 mobile network operators worldwide.
The initiative is part of the GSMA’s handset affordability coalition and is designed to “accelerate digital inclusion across the continent by lowering the cost of smartphone ownership for millions who remain unconnected”.
GSMA Intelligence estimates that a $40 smartphone could bring mobile internet within reach for an additional 20-million people in sub-Saharan Africa, while a $30 handset could enable up to 50-million to get connected.
The group of mobile operators proposed baseline specifications for memory, RAM, camera quality, display size, battery performance and other features to “ensure a viable, long-lasting 4G smartphone experience at a significantly reduced cost”.
Smartphone affordability has received much attention and activity in recent months in SA.
Vodacom, SA’s largest mobile operator, recently launched a service allowing for smartphones to be paid off daily as a way to increase device affordability. In adddition, MTN recently began offering a segment of its customers smartphones for as little as R99.
Earlier this month Capitec launched a new offering whereby customers will be able to purchase a range of 22 smartphones directly from the bank.
It is following in the footsteps of rivals, such as FNB, that have been selling devices for several years.
In February, Standard Bank rebooted its mobile device offering with a broader range of tech brands and financing terms to boost customers for its telecom business.
Vivek Badrinath, director-general of the GSMA, said: “Access to a smartphone is not a luxury — it is a lifeline to essential services, income opportunities and participation in the digital economy.
“By uniting around a shared vision for affordable 4G devices, Africa’s leading operators and the GSMA are sending a powerful signal to manufacturers and policymakers. This is an important step towards bridging the digital divide and ensuring that millions more people can reap the benefits of mobile connectivity.”
According to the GSMA’s State of Mobile Internet Connectivity 2025 Report, more than 3-billion people globally live within mobile broadband coverage but do not use the internet, with affordability of handsets cited as the top challenge.
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