A coalition of Africa’s largest mobile operators plans to pilot entry-level 4G smartphones in Nigeria and five other countries starting in 2026.

The target retail price for these devices is about N70,000, equivalent to roughly $40 at an exchange rate of N1,400 to the dollar.

The operators are betting that large-scale production combined with regulatory support can overcome global chip market pressures and connect millions of people to the internet for the first time.

The initiative is coordinated by the GSMA through its Handset Affordability Coalition and supported by a group of operators known as the G6.

It targets a retail price of about N56,000 ($40) for entry-level 4G devices.

The six countries selected for the pilot phases beginning in 2026 are Nigeria, Rwanda, the Democratic Republic of Congo, Ethiopia, Tanzania and Uganda.

The participating operators are Airtel, Axian Telecom, Ethio Telecom, MTN, Orange and Vodacom.

These operators have signed a memorandum of understanding with device manufacturers to define minimum technical standards and aggregate demand, according to the GSMA.

The plan addresses one of the world’s widest mobile internet usage gaps in Africa.

While network coverage has expanded rapidly, only 38 percent of the continent’s population used mobile internet in 2024, compared with a global average of 68 percent, according to GSMA data.

Roughly 960 million Africans live within network reach but remain offline.

Industry executives say the price of internet-capable handsets, rather than coverage, has become the biggest barrier.

“Low-cost smartphones are the gateway to digital and financial inclusion,” Vivek Badrinath, GSMA director general said, adding that 3.1 billion people globally have mobile coverage but do not use mobile internet.

Nigeria, Africa’s most populous country, is viewed as a key test case for the initiative.

Despite rapid growth in fintech, streaming and online commerce, millions of Nigerians still rely on basic feature phones.

Analysts believe success in Nigeria’s entry-level market segment could serve as a template for other emerging markets.

Operators in the coalition plan to drive adoption through bundled data offers, instalment payment models and distribution partnerships once the devices become available.

The technical specifications for the phones were first outlined at MWC Kigali 2025.

At that event, the coalition defined baseline requirements to keep production costs low while ensuring compatibility with 4G networks across African frequency bands.

The affordability effort faces challenges from global semiconductor market trends.

Research firms have warned that memory prices could rise sharply through mid-2026 as chipmakers prioritise higher-margin artificial intelligence data centre demand.

Counterpoint Research forecasts global smartphone shipments will dip by about two percent in 2026, with component costs climbing between eight percent and 15 per cent on average.

Higher memory prices, potentially up 40 percent by the second quarter, could squeeze margins on ultra-low-cost devices and complicate efforts to maintain retail prices near N56,000.

Industry sources indicate the coalition’s strategy depends partly on policy concessions from governments.

The GSMA has urged African governments to cut or eliminate import duties and taxes on entry-level 4G smartphones to preserve affordability.

“In a global context of rising memory costs, governments have an important role in bridging the usage gap,” Badrinath said.

The handset initiative is part of a broader effort to tackle non-price barriers to mobile internet adoption.

The GSMA is advancing AI-driven language tools to help users navigate online content in local languages, with the initiative expected to feature at MWC 2026 Barcelona.

Executives believe combining cheaper devices with localised digital services could unlock demand in rural and peri-urban communities, where awareness and language limitations remain significant hurdles.

For operators facing slowing revenue growth in mature urban markets, the large offline population represents both a social challenge and a commercial opportunity.

If the pilot proves successful, tens of millions of people could join the mobile internet economy over the next few years.

They would gain access to digital payments, online education, e-commerce platforms and remote healthcare services.

Whether N56,000 phones can withstand global supply shocks may determine how quickly that ambition becomes reality.