GSMA, the global telecommunications industry organization, has called for urgent action to reduce smartphone costs in low-income countries to enhance access to artificial intelligence. This request follows the release of the annual report "State of Mobile Internet Connectivity 2026," which examines the global state of mobile connectivity. According to this report, while 4.8 billion people have access to mobile internet, 3.4 billion are still deprived of this opportunity, with 90 percent of them living within mobile broadband coverage.
Digital Inequality is Increasing
The GSMA report shows that the growth of the digital population worldwide has significantly slowed, with an estimated 160 million new users expected to connect to the internet by 2025, down from 190 million in 2024. Vivek Badrinath, CEO of GSMA, stated, "AI can improve lives in unprecedented ways, but this technology means nothing if people cannot connect to the internet."
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Badrinath also warned that the biggest risk is not only the gap between different countries but also the gap between those who can participate in the digital economy and those who cannot. GSMA emphasizes the importance of preventing a large segment of the population in developing countries from being left behind and has urged governments and manufacturers to take action to reduce smartphone costs.
Rising Smartphone Costs
One of the main factors contributing to increasing digital inequality is the sharp rise in the costs of memory and chipsets for smartphones, driven by global demand for AI infrastructure and data centers. Memory prices have recently surged dramatically, more than doubling between the third quarter of 2025 and the first quarter of 2026, with an additional increase of 80 to 90 percent expected in the second quarter of 2026.
These rising costs are passed on to consumers, making entry-level smartphones unaffordable for many people around the world. GSMA warns that this situation could reverse years of progress in reducing the mobile usage gap. Badrinath emphasized, "If we cannot stabilize the price of entry-level smartphones, billions will be deprived of the next generation of digital services."
According to this year's report, by the end of 2025, the cost of entry-level smartphones for the poorest 20 percent in low-income countries will account for up to 44 percent of their average monthly income, rising to 76 percent in sub-Saharan Africa. GSMA predicts that the sharp increase in prices will lead to the largest annual decline in smartphone shipments in history, with emerging markets being the most vulnerable group.
GSMA's Proposed Solutions
To address the growing digital inequality, GSMA has urged manufacturers to reduce the price of entry-level smartphones to $30, arguing that this action could make devices accessible to about 1.6 billion people. Additionally, a price of $20 could make these devices accessible to around 2.2 billion people who currently live within mobile broadband coverage.
GSMA has also called on chip and memory manufacturers to take effective measures to increase access to low-cost components for entry-level phones. This action could help smartphone manufacturers make their entry-level devices more accessible. Furthermore, GSMA emphasizes the need to address other key barriers to digital inclusion, including low literacy, digital skills, security concerns, and the availability of relevant content.
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