5G Expected to Contribute $10 Billion to Africa's Economy by 2030

"Mobile connectivity is a key driver of digital transformation and socioeconomic growth in Sub-Saharan Africa," according to GSMA's annual report on the state of the Sub-Saharan Africa's mobile economy. The report points out that "Governments and businesses are increasingly using 4G and 5G networks alongside technologies such as AI and IoT to enhance productivity and service delivery. Despite growing demand for mobile, a significant usage gap persists. This underscores the need for efforts by operators to address the barriers to mobile internet adoption, such as device affordability, online safety and digital skills."

The report's key findings include:

• Persistent Usage Gap: Mobile internet penetration in Sub-Saharan Africa reached 27 percent by the end of 2023, yet a substantial usage gap of 60 percent remains. This gap represents millions who live within network coverage but face barriers such as device affordability, digital skills deficits, and concerns around online security. Globally, 3.1 billion people – 39 percent of the global population – are impacted by the usage gap. Sub-Saharan Africa is the least connected region, with the largest usage gap worldwide.
• Expanding 4G Coverage and Early 5G Growth: The region's 4G adoption is forecast to reach 50 percent by 2030, overtaking 3G as the primary technology. Although 5G adoption remains in its early stages, it is projected to reach 17 percent of total connections by 2030, primarily in South Africa, Nigeria, and Kenya.
• Economic Impact and Infrastructure Needs for 5G: By 2030, 5G alone is expected to contribute $10 billion to the region's economy, accounting for 6 percent of the mobile sector's total economic impact. GSMA's report emphasizes the need for progressive spectrum policies, particularly the release of mid-band spectrum, to support long-term growth and equitable digital access. Additionally, 5G Fixed Wireless Access (FWA) is gaining traction as a primary broadband solution in countries such as Angola, South Africa, Nigeria, Kenya, Zambia, and Zimbabwe, addressing demand for high-speed connectivity in underserved areas.
• Strengthening Digital Security: South Africa became the first country in Sub-Saharan Africa to implement GSMA Open Gateway APIs, focusing on fraud prevention and security with Number Verification and SIM Swap APIs. This initiative is part of broader efforts across the region to improve digital security, particularly within digital banking​.
• Generative AI Potential: Generative AI is expected to contribute up to $1.5 trillion to Africa's economy by 2030, with mobile operators increasingly using AI for customer engagement and network optimization. MTN and Vodacom, for instance, are deploying AI-powered initiatives to enhance operational efficiency, although the region faces a shortage of skilled AI professionals.

Through this report, the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, advocates for a series of critical actions to ensure sustainable growth and digital inclusion:

1. Affordability Reforms: High costs remain a barrier to mobile access, with the report calling for reduced taxes on the sector, such as lowering import duties on handsets and cutting activation fees, to make services affordable and accessible for all.
2. Revitalized Universal Service Funds (USFs): Many USFs in Sub-Saharan Africa are underperforming, often hindered by inefficiencies. The report calls for reforms to improve transparency, streamline disbursements, and direct funds toward impactful initiatives, such as digital literacy programs in underserved areas.
3. Progressive Spectrum Policy: With increasing data demands, the report urges governments to release additional spectrum, particularly in the 6 GHz band, and to adopt policies that ensure efficient, affordable, and environmentally sustainable mobile network expansion.

Infographic: GSMA Intelligence

With respect the mobile technology's contributions to the UN Sustainable Development Goals (SDGs), the report says the industry "contributes to SDG 4, which seeks to ensure inclusive and equitable quality education, and promote lifelong learning opportunities for all. Digital transformation is making learning resources more accessible, enhancing educational outcomes and supporting continuous learning. By bridging gaps in education access and improving the quality of education, mobile technology is fostering a more inclusive society."

What investment or commercial opportunities are you seeing in Sub-Sahara's mobile technology industry? What are your recommendations for closing the digital divide?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Driving Kenya's Economic Growth Through Digitalization

In a press release announcing the publication of a report focusing on the drivers behind the digital transformation of Kenya's economy, the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, said: "Kenya's digital economy will contribute KSH 662 billion to GDP by 2028. This growth, driven by strategic policy reforms, will accelerate digitalization in critical sectors such as agriculture, manufacturing, transport, and trade. In addition to these advancements, the report forecasts the creation of 300,000 new jobs and an increase in tax revenues by KSH 150 billion."

What is more, "To sustain its economic momentum, diversify the economy, boost productivity, and create high-quality jobs – particularly for young and rural populations – Kenya is focusing on digitalization as a key driver of economic growth, government revenue, and socio-economic development."

Below are the report's key messages:

• "The digitalization of the economy is a key driver of economic growth and government revenue, as well as supporting socio-economic development and offering a path towards shared prosperity. By leveraging digitalization opportunities, the Government of Kenya can achieve sustainable economic growth and structural change."
• "Adoption of digital technologies across both public and private sectors has been observed to positively impact economic growth. It increases productivity in agriculture, improves access to global value chains (GVCs) and improves the efficiency and transparency of government and public services. Moreover, access to emerging technologies such as mobile money, Artificial Intelligence (AI) and cloud computing are desirable as drivers of digital and financial inclusion which in turn supports human development."
• "This study identifies opportunities and quantifies the economic value of adopting digital technologies across selected sectors of Kenya's economy. It identifies how these opportunities can be unlocked through policy reforms, particularly focusing on the key role that the mobile telecoms sector plays in supporting the process of digitalization."
• "Kenya is a regional leader in mobile connectivity and Mobile Financial Services (MFS). It pioneered the use of mobile money, making huge strides in financial inclusion of the unbanked, and has retained its position as a global leader in this area. Further extending its reach as the enabler of electronic payments across the digital economy, as well as traditional sectors, can propel digitalization and growth for many more Kenyans and achieve increased resilience and revenue for the Government."

The report also "identifies a series of policy recommendations that, if implemented, will close the internet usage gap from the current level of over 64% of the population to 51% in 2028. This would result in 49% of the population of Kenya being connected to the Internet, equivalent to over 10 million additional people." The four priority policy reforms are:

1. Tax restructuring in the telecommunication industry to purposefully drive usage.

2. Implementing policies and programs to improve device affordability.

3. Ensuring a sustainable and predictable investment environment. This includes:

• Supporting financial sustainability through tax deductions against spectrum payments,
• Reducing the cost of energy to power infrastructure,
• Adopting a favorable spectrum pricing model, and
• Accelerating the license renewal process.

4. Supporting productive use of digital technologies by businesses across economic sectors, with targeted policies to improve digital skills and human capital, support MSMEs and start-ups and prioritize context-appropriate technologies and local needs.

The report's authors importantly point out that "These policy reforms have the potential to make a significant contribution to Kenya's economic objectives, including economic transformation across important sectors such as agriculture and manufacturing." The potential macroeconomic impacts are summarized in the image below:

Kenya has firmly positioned itself as a leader in mobile financial services and digital innovation. Following the development of information and communications technology sector in Sub-Saharan Africa for over 30 years, I appreciate how GSMA's study outlines the economic benefits of expanding digital adoption and provides a roadmap for maximizing these gains through targeted policy actions.

What are your recommendations for how Kenya can drive economic growth through digitalization?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Toolkit Designed to Help Deliver Digital Skills Training for Impact in Sierra Leone

In my experience working in emerging and developing countries, many people mistakenly assume that if an individual is connected to the mobile internet, then they are able to utilize various life-enhancing applications. However, there is a stark difference between having access to the applications and the knowledge to make full use of these digital tools.

According to a report published by GSMA, "Mobile networks are the primary – and often only – channel for people to connect to the internet, especially in low-and-middle income countries (LMICs)." What is more, "Despite the rapid growth in mobile internet adoption in recent years, there remains a significant usage gap in LMICs: 48% of the population across LMICs still do not use the mobile internet. Of this group, 42% live within the footprint of a mobile broadband network but are not using the internet – this is known as the 'usage gap.' In Sierra Leone, the usage gap is significantly higher at 77%. Among people in this group, a lack of digital skills is one of the most significant barriers preventing them from adopting the mobile internet."

To address the digital skills barrier, the UK-based organization, which aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, says it "developed the Mobile Internet Skills Training Toolkit (MISTT), a free-to-use set of resources covering the fundamentals of the mobile internet, popular apps and use cases." The report also points out that "In order to gather evidence on the efficacy of the MISTT and identify potential areas for further improvements, the GSMA evaluated a digital skills training campaign conducted by Orange Sierra Leone, using MISTT. Specifically, the evaluation aimed to understand how effectively the MISTT delivers improved digital skills, what the socioeconomic impact is on trainees, and what improvements are needed to better reach the underserved."

Below are the report's key findings:

• "MISTT improved digital skills for the majority of trainees interviewed in Sierra Leone, by reducing the functional barriers to mobile internet use, boosting learners' self-confidence and sense of independence and increasing the frequency of internet use by the trainees."
• "There are indications that MISTT has had a positive socio-economic impact in Sierra Leone. This was visible in two main ways: enhancing trainees' potential to conduct business online has improved their prospects and income; and trainees have acquired greater knowledge and education across diverse topics."
• "The impact of MISTT training on business was most observable for women, as they experienced the greatest changes to their digital skills confidence levels, as well as day-to-day life benefits, including being able to do business online while at home. Women were also more likely to enjoy the spill-over effects of the training, as their spouses passed on what they had learned."
• "Incentives are a critical part of digital skills training – both for potential customers and trainers. The effectiveness of digital skills training can be greatly enhanced by providing appropriate incentives to potential trainees and their trainers. For trainers, this might involve providing financial incentives for the delivery of training that drives digital inclusion. For customers, this involves emphasizing how the mobile internet can be valuable to their lives and making them aware of any incentives, such as free mobile data and lunch, that are available to reward participation at in-person training events."
• "Face-to-face training provides numerous advantages for the underserved. Face-to-face or in-person training allows a more tailored learning experience with opportunities for practical application by learners. For example, in-person training enabled trainers to spend time answering trainees' questions and providing tailored support on some of the challenges that they encounter. This is most important for learners with lower literacy and education levels, as well as those in rural areas. However, while effective, in-person training may be more costly for implementers and more difficult to scale."
• "Digital skills training needs to consider the specific barriers that underserved users face. Issues, such as lower levels of education and a lack of basic digital skills and confidence, can impact on people's ability to access and participate in training activities. The evaluation also highlights the importance of adopting a gender lens to the delivery and expansion of digital skills training to ensure it is reaching women. There is a need to consider who might be excluded or disadvantaged from the proposed delivery approach, as well as ensuring the location, timing and content of the training, for instance, will meet their needs."
• "To enhance the scalability and viability of MISTT digital skills training, implementers can explore other approaches to delivering digital skills beyond in-person channels to understand their effectiveness. Remote channels, for example videos, voice messaging and radio broadcasts, may provide an effective way for delivering digital skills training and/or improving training awareness in a cost-effective manner. Both in-person and remote channels have relative advantages and disadvantages. While in-person channels may be more effective at reaching certain population segments, remote channels provide unique benefits to implementers as they are easier to scale and can be iterated or updated more easily than face-to-face channels. Depending on the training objectives, both digital and in-person channels can be used simultaneously to complement the other."
• "Combining digital skills training with other events or product pitches can extend the reach of digital skills training for the underserved and offer benefits to implementers. Delivering digital skills training alongside other activities, such as entertainment events or with the sale of a product or service, can encourage wider participation by reaching people who may be reluctant to attend a formal training event, for example, or linking it to something that is seen as relevant to them. Nonetheless, it's important to bear in mind the needs of underserved groups while designing these activities. For example, for women, the idea of 'standing in the street watching entertainment' may not feel culturally appropriate, as many are worried about theft or appearing to be lazy people who have nothing important to do."

I appreciate how GSMA's report "highlights the key learnings from the evaluation of the MISTT digital skills training initiative implemented by Orange Sierra Leone. It provides key insights on the effectiveness of MISTT in improving digital skills acquisition among different underserved groups, as well as the socio-economic impact of the training." There is also value in how the report "identifies considerations for improving the effectiveness of digital skills training in reaching underserved groups." Importantly, however, the GSMA notes that "the insights and recommendations in this report do not represent our comprehensive view of how to implement MISTT. Rather, they are recommendations specifically arising from this evaluation, and can be a basis for further research and trial. This complements our existing research on digital skills and evaluation of MISTT implementations."

What are your recommendations on how to promote digital literacy and reduce the digital usage gap in LMICs?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

A Roadmap to Ensure That Every Citizen in Zambia Benefits From the Digital Revolution

My colleague, Aze Malawo, who leads the operations in Sub-Saharan Africa for Global Tactics, an multinational advisory firm that helps clients understand how the world is changing, and how that creates opportunities to be seized and risks to be managed, splits her time between Washington, DC and her native Zambia. Since my first meeting Aze in the mid-2000s, I have heard about the beauty of the southern African nation and the business opportunities that exist in several sectors including the information and communications technology sector.

It was, therefore, with great interest to read a report published by the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, highlights how "the digitalization of the economy is a key driver of social and economic growth in Zambia." According to the report, "By taking advantage of the opportunities offered by digitalization, the Government of Zambia can deliver on the development objectives that it has defined and achieve sustainable economic growth."

The report's key findings include:

• Adoption of digital technologies across both public and private sectors accelerates economic growth by promoting innovation and investment. It increases productivity across all sectors of the economy, improves access to global value chains (GVCs) and improves the efficiency and transparency of government and public services. Moreover, access to emerging technologies such as mobile money, artificial intelligence (AI) and cloud computing are desirable as drivers of digital and financial inclusion which in turn supports human development.
• This study identifies opportunities and quantifies the economic value of adopting digital technologies across selected sectors of Zambia's economy. Accelerated development of the digital economy would benefit both the Government of Zambia and the country's citizens in multiple ways. Economic growth would raise incomes, create jobs and raise tax revenues. Digital technologies would also provide direct benefits through enhanced access to information, productivity-enhancing technologies and improved educational outcomes.
• Mobile connectivity and mobile money both play a key role in digitalization. Mobile broadband connectivity provides the foundation for the digitalization process. Mobile money is also critically important, providing individuals and businesses an accessible and efficient route to financial inclusion.
• The mobile telecoms sector in Zambia has made steady progress in recent years but there remain significant challenges. These challenges include expanding access and increasing adoption of digital services, particularly among low-income households and in rural areas. This will require further network rollout and upgrades, support to ensure that devices and services are affordable for everyone and boosting adoption through stimulating demand for digital services.

The report importantly points out that "[p]olicy plays a critical role in the future development of the digital economy in Zambia. The growth and development of the digital economy is strongly influenced by policy and regulatory decisions taken by the government." The GSMA says its "study identifies how opportunities for economic growth and development can be unlocked through policy reforms. Overcoming the challenges facing the sector will require bold policy initiatives on the part of government to stimulate demand, reduce the cost of supply and promote investment in mobile telecoms networks and in mobile money services."

GSMA's report also "identifies a series of specific policy recommendations that, if implemented, would increase the number of internet users in Zambia by 2.1 million by 2028. This would reduce the internet usage gap by 9 percent points."

The priority policy reforms include:

• Reducing sector-specific taxes and fees on mobile telecoms services
• Reducing operating costs and improving the financial sustainability of the mobile business
• Modernizing the tariff regulation regime, to provide more certainty for operators
• Lifting restrictions on mobile money charges and removing the mobile money levy
• Stimulating additional demand for mobile telecoms services

If adopted, these policy reforms "will help Zambia to achieve its economic development objectives, including economic transformation across important sectors such as agriculture and manufacturing. The potential macroeconomic impacts are summarized below in Figure 1."

Image: GSMA

In a press release issued by the GSMA, Angela Wamola, Head of Sub-Saharan Africa for the UK-based organization, said: "The Zambian government has demonstrated strong commitment to digitalization through its National ICT Policy 2023 and the Eighth National Development Plan. Now, more than ever, collaborative action between the government, industry, and stakeholders is needed to create the enabling environment for digital transformation. The future of Zambia lies in digital connectivity. With the right policies, we can close the digital divide, empower communities, and unlock new economic opportunities. The Zambia Digital Economy Report provides a clear roadmap to ensure that every citizen benefits from the digital revolution. Now is the time for bold action."

What are your thoughts about the report's findings? What digital transformation opportunities are you seeing in Zambia's mobile technology sector.

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Mobile Revenues Will Reach $227 Billion in Asia Pacific by 2030, Says GSMA Report

"The mobile industry continues to underpin the rapid digital transformation in Asia Pacific, with advanced mobile networks enabling innovative use cases for consumers and enterprises," according to GSMA's annual report on the state of the mobile industry in the Asia Pacific region. The UK-based organization, which aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, adds: "The role of mobile infrastructure and services will become even more vital to the way society functions as governments increasingly use digital technologies to tackle some of the most pressing social and economic challenges."

The report points out that "By the end of 2023, 1.8 billion people in Asia Pacific (63% of the population) subscribed to a mobile service." What is more, Growth in mobile internet penetration has been remarkable. At the end of 2023, 51% of the region's population used mobile internet, equating to just over 1.4 billion users – almost triple the figure a decade earlier. However, large swathes of the population across the region still remain unconnected, most of them within the usage gap." The GSMA importantly notes that "Addressing the usage gap is crucial to closing the digital divide and enabling life-enhancing applications around finance, health and education."

The report's key findings include:

• 5G continues to rapidly grow, but 4G will remain the dominant technology for the foreseeable future
• By the end of 2030, Asia Pacific countries will be on both ends of the global 5G spectrum
• Mobile data traffic in Asia Pacific will quadruple between 2023 and 2030
• Licensed cellular IoT connections in Asia Pacific will reach 270 million by 2030
• By 2030, mobile revenues will reach $227 billion in Asia Pacific
• At the end of the decade, mobile's economic contribution will reach $1 trillion
• The fiscal contribution of the mobile ecosystem reached $90 billion in 2023 and 5G will add almost $130 billion to the Asia Pacific economy in 2030
• Satellites and non-terrestrial networks can help reduce the connectivity gap, by bringing communications to the region's challenging terrains – including archipelagos, rainforests, deserts, and mountain ranges – where traditional infrastructure is expensive and difficult to build.
• Operators across the Asia Pacific region are harnessing the power of generative AI (genAI) to drive internal transformations and seize new revenue streams through AI investment.

I appreciate how the GSMA explains that "The impact of mobile connectivity is evidenced by its contribution to the economy." For example, "In 2023, mobile technologies and services generated 5.3% of Asia Pacific's GDP, a contribution that amounted to $880 billion of economic value added, and supported around 13 million jobs across the region."

With respect to the mobile industry's impact on the UN Sustainable Development Goals (SDGs) in the region, the GSMA says the mobile industry continues to achieve its impact on SDGs "driven by the increased reach of mobile networks and growing take-up of mobile internet services. SDG 9: Industry, Innovation and Infrastructure, SDG 6: Clean Water and Sanitation and SDG 4: Quality Education were the most improved SDGs in the region between 2015 and 2022. The growing use and adoption of smartphones and mobile internet is contributing to mobile's impact on the SDGs."

Infographic: GSMA Intelligence

What do you think of the report's findings? What localized mobile services are you developing for the Asia Pacific region?

 

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Mobile Internet Adoption Continues to Accelerate Among Women in LMICs, But Further Action is Required to Close the Gender Gap

In its annual report that explores the latest data on the mobile gender gap, the key barriers preventing women's equal access to and use of mobile, and what is needed to close the mobile internet gender gap, the GSMA says "Mobile phones and mobile internet can be life changing, enabling people to stay connected to each other and access information and services from anywhere, including health care, education, e-commerce, financial services and income generating opportunities. In 2023, the world was more connected than ever before with more than 3.7 billion people in low- and middle-income countries (LMICs) accessing the internet on a mobile phone." Moreover, according to the report, "Mobile is the primary way people are accessing the internet in LMICs, accounting for 84% of broadband connections in 2023. This is especially true for the underserved, including women and those who live in rural areas. In 10 of the 12 countries surveyed for this report, women who use the internet are more likely than men to access it exclusively on a mobile phone."

The report points out that "Across LMICs, 83% of women now own a mobile phone, 60% own a smartphone and 66% use mobile internet. However, mobile access and use remain unequal. Women are still less likely than men to have access to mobile phones, mobile money, mobile internet and other mobile services." Disappointingly, "Women are also less likely than men to have equal use of these services, particularly the most underserved women, including those who have low literacy levels, low incomes, live in a rural area or have a disability."

The GSMA says its "latest data shows that the mobile internet gender gap narrowed from 19% in 2022 to 15% in 2023 due to women adopting mobile internet at a faster rate than men. This brings us back to where we were in 2020, but it is not yet clear whether this trend will continue. It is essential for women, and societies more broadly, that this momentum continues and the mobile gender gap continues to close."

What is more, "Addressing the mobile gender gap provides significant social and commercial benefits to individuals, societies and economies. Connectivity is vital to achieving the United Nations Sustainable Development Goals (SDGs), including those related to health, education and financial inclusion. GSMA analysis has estimated that closing the gender gap in mobile ownership and use in LMICs over an eight-year period could deliver $230 billion in additional revenue to the mobile industry. The Global Digital Inclusion Partnership estimates that 32 LMICs are on track to lose more than USD 500 billion in GDP in the next five years due to the digital gender divide."

The report importantly explains: "We know that once women start using mobile phones and mobile internet, they usually see the benefits and it improves their lives to a similar degree as men. In 2022, we found that across the 12 survey countries, most people who use mobile internet believe it has had a positive impact on their lives and use it every day, with little difference by gender."

I concur with the following assertion made by the report's authors: "Ensuring that women can access and use mobile is essential, especially in our increasingly digital world. Mobile can enable women to be more resilient in the face of economic, climate and political crises and shocks. More attention, effort and investment are needed to close the mobile internet gender gap – a goal we must continue to strive to meet so that women, their communities and society can reap the full, life-changing benefits of mobile."

The UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, presents the following recommendations for all stakeholders to close the mobile gender gap:

• Ensure there is a focus on gender equality and reaching women at an organizational and policy level through senior leaders championing the issue and setting specific gender equity targets.
• Understand the mobile gender gap by improving the quality and availability of gender-disaggregated data, and understanding women's needs and the barriers they face to mobile ownership and use.
• Explicitly address women's needs, circumstances and challenges in the design and implementation of mobile-related products, services, interventions and policies. This includes addressing the barriers women face related to affordability, knowledge and digital skills, safety and security, access and the availability of relevant content, products and services.
• Collaborate and partner with different stakeholders to address the mobile gender gap. Targeted intervention is needed from industry, policymakers, the development community and other stakeholders to ensure that women are no longer left behind.

While it is encouraging mobile internet adoption is accelerating among women in LMICs, further action is required to close the gender gap.

Do you agree with GSMA's recommendations for stakeholders to close the mobile gender gap? What would you add?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

GSMA's Annual Report on the State of the Global Mobile Industry Looks at How Operators Are Exploring the Potential of genAI

According to the GSMA's most recent annual report on the state of the global mobile economy, "Mobile connectivity remains pivotal in driving digital innovation. It empowers individuals and enterprises with a wide array of transformative technologies while also aiding governments in delivering positive societal impacts."

Produced by GSMA's in-house research team, GSMA Intelligence, these reports contain a range of technology, socio-economic and financial datasets, including forecasts out to 2030. This year's report points out that "The impact of mobile connectivity is evidenced by its contribution to the economy. In 2023, mobile technologies and services generated 5.4% of global GDP, a contribution that amounted to $5.7 trillion of economic value added, and supported around 35 million jobs."

The report's key findings include:

• 5G will account for over half (51%) of total mobile connections by 2029 and reach 56% adoption by the end of the decade.
• 58% of the world's population were using mobile internet at the end of 2023, representing 4.7 billion users and an increase of 2.1 billion since 2015.
• Three billion people are still not using mobile internet despite living in an area covered by mobile broadband networks (the 'Usage Gap'), underscoring the urgency of addressing barriers to adoption highlighted in the GSMA's 'Breaking Barriers' campaign, such as handset affordability and literacy/digital skills.
• 5G is expected to benefit the global economy by more than $930 billion in 2030, of which the primary beneficiaries are expected to be manufacturing (36%), public administration (15%) and the services (10%) industries.

Infographic: GSMA Intelligence

The are two items that I found of particular interest. One is how eSIM adoption continues to gather pace. "The number of eSIM consumer devices launched has grown significantly over the last five years and the number of commercial eSIM services is also on the rise. This has set the foundation for eSIM adoption to gather pace over the course of the decade," the reports notes. What is more, "GSMA Intelligence's baseline scenario predicts around 1 billion eSIM smartphone connections globally by the end of 2025, growing to 6.9 billion by 2030. This would account for around three quarters of the total number of smartphone connections by 2030." The GSMA claims that "North America will be the region with the fastest rate of eSIM adoption due to Apple's launch of eSIM-only smartphones in the US in September 2022."

On the topic of mobile operators exploring the potential of generative AI (genAI), "the range of genAI applications is broad," the GSMA notes. "Much of the early work has focused on using the technology to improve customer services and support sales and marketing activities. However, as genAI matures, there is potential for operators to not only support internal use cases but generate new revenues from AI investments." Examples of operators generating new revenues from investments in genAI include "SK Telecom's bold AI pyramid strategy ... as do recent product announcements from the likes of KT, NTT and SoftBank."

As for maximizing the AI opportunity, the report says "The speed of AI adoption in the mobile industry may depend on several factors. First, mobile operators often face difficulties in accessing the internal data needed for training AI models, hindered by the diversity and volume of data sources. Additionally, operators must ensure the accuracy of AI-generated insights, as reliance on inaccurate data may lead to flawed decision-making."

With respect to ethical concerns around AI that still need to be addressed, the report boldly asserts that "The mobile industry is committed to the ethical use of AI in its operations and customer interactions to protect customers and employees, remove any entrenched inequality and ensure that AI operates reliably and fairly for all stakeholders. The GSMA's AI Ethics Playbook serves as a practical tool to help organizations consider how to ethically design, develop and deploy AI systems."

What trends are you seeing that are shaping the global mobile ecosystem?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

While Mobile Internet Adoption Continues to Increase, the Growth Rate Slowed in 2022

The previous posts in the forum addressed the economic benefit 5G will bring to the Sub-Saharan Africa economy in the near future and the challenges and opportunities for scaling e-commerce adoption by small businesses in Africa. While 5G is expanding rapidly in low- and middle-income countries and smartphone adoption is projected to increase in the coming years, which will allow people to connect to critical services such as education, healthcare, and financial services, and provide income-generating opportunities, significant digital divides exists. Not only do these digital divides inhibit entrepreneurs from developing innovative localized technology solutions, but they prevent investors from providing essential financial capital and advisory support.

Therefore, it was with great interest to read GSMA's State of Mobile Internet Connectivity 2023 that "considers the importance of not just mobile broadband coverage but 'meaningful connectivity' – users having a safe, satisfying, enriching and productive online experience that is affordable. This requires an understanding of the key barriers and enablers for meaningful connectivity, including infrastructure, affordability, skills, safety and security, and relevant content and services. Each of these is considered in this report."

Below are the report's key findings (copied in verbatim):

• Mobile internet adoption continues to increase, with 57% of the global population (4.6 billion people) now using mobile internet – but the growth rate at which people are adopting mobile internet slowed in 2022. Only 200 million people started using mobile internet in 2022, compared to 300 million in 2021 and in 2020. Just over three quarters of the growth in mobile internet adoption in 2022 came from low- and middle-income countries (LMICs), where 95% of the unconnected population live. In least developed countries (LDCs), almost 30 million additional people started using mobile internet in 2022, meaning one in four people in LDCs are using mobile internet.
• Mobile broadband coverage has remained relatively unchanged, with 95% of the global population living within the footprint of a mobile broadband network. With only marginal growth in coverage in 2022, the coverage gap – those living in areas without mobile broadband coverage – stands at almost 400 million people (5% of the global population). The remaining uncovered communities, which are predominantly rural, poor and sparsely populated, are the most challenging to reach.
• Most of those not using mobile internet live in areas covered by mobile broadband. In 2022, 3 billion people (38% of the global population) lived in areas covered by mobile internet but did not use it. With mobile internet adoption outpacing network expansion, this usage gap has been shrinking slowly in recent years, from 40% in 2021 to 38% in 2022. However, the usage gap remains almost eight times the size of the coverage gap. Considering only adults aged 18 and above, 23% are still not using mobile internet despite being covered by a mobile broadband network. The majority of those living within mobile broadband coverage but not using it do not yet own a mobile phone.
• Connectivity varies significantly between and within regions and countries, with 95% of the unconnected living in LMICs. Sub-Saharan Africa remains the region with the largest coverage and usage gaps. In LMICs, adults in rural areas are still 29% less likely to use mobile internet than those in urban areas, while women are 19% less likely to use mobile internet than men. In LDCs, only 25% of the population use mobile internet, compared to 52% across LMICs overall and 85% in high-income countries (HICs).
• The majority of the global population now own a smartphone, which is how most people are accessing mobile internet. At the end of 2022, 54% of the global population (4.3 billion people) owned a smartphone. Of the 4.6 billion people using mobile internet, almost 4 billion do so using a smartphone (49% of the global population) and around 600 million people do so using a feature phone (8% of the global population). There are also 350 million people who own a smartphone but do not use mobile internet.
• 4G and 5G continue to expand, but 2G and 3G remain important sources of coverage in LMICs. While the overall broadband coverage gap has remained broadly unchanged since 2021, the deployment of 4G and 5G continues to expand. Globally, 90% of the population is now covered by 4G, and 32% by 5G (up from 25% in 2021). Almost three quarters of the 5G network expansion in 2022 was in Asia-Pacific, and there was particularly strong growth in 4G network expansion in Sub-Saharan Africa. However, most mobile operators will continue to maintain 2G and 3G networks for the foreseeable future, with a significant portion of users continuing to use these networks, particularly in LMICs.
• Data usage and network quality continue to increase but significant differences remain between HICs and LMICs. Monthly global mobile data traffic per user increased from 8.4 GB in 2021 to 11.3 GB in 2022 – the largest absolute increase since it was first tracked in 2015. Network quality improved across all regions, driven by improved networks and consumers migrating to 4G or 5G. For the first time, all regions now have average download speeds of at least 10 Mbps, while the global average download speed increased from 27 Mbps to 34 Mbps. HICs record download speeds four times greater than those in LMICs.
• Awareness of mobile internet continues to grow but has slowed significantly since 2019. In nine of the 12 countries surveyed, more than 80% of the population was aware of mobile internet in 2022. However, women and those living in rural areas remain less likely to be aware of mobile internet, and lack of awareness remains a critical initial barrier to mobile internet adoption in some countries.
• Affordability and skills remain the two greatest barriers to mobile internet adoption and use. Across the countries surveyed, for mobile users who are aware of mobile internet but don’t use it, the top reported barriers to adopting it remain affordability (particularly of handsets) and literacy/digital skills. Safety & security concerns and lack of perceived relevance were reported less often but are also important barriers. For example, among smartphone owners, lack of perceived relevance is often cited as a top barrier to mobile internet adoption in several countries.
• Affordability of devices and data continues to disproportionately impact the underserved. Across LMICs, affordability of an entry-level, internet-enabled handset remained relatively unchanged, while affordability of data continues to improve across most regions. However, while the affordability of an entry-level device across all LMICs is equivalent to 16% of average monthly income, this increases to 40% for the poorest 40% of the population and 55% for the poorest 20%. Across LMICs, it is equivalent to 24% of average monthly income for women, compared to 13% for men.

GSMA's report also points out that barriers to digital inclusion are complex and interconnected:

• Knowledge and skills: "Improving digital skills and literacy, as well as driving awareness and understanding of mobile internet and its benefits, is critical to increasing digital inclusion. Digital skills initiatives should focus on users' needs and circumstances."
• Affordability of handsets and data: "Approaches to improve affordability should include efforts to lower the cost of internet-enabled handsets and data through innovative data pricing strategies and handset-financing options, in addition to adopting tax policies and providing targeted subsidies that promote the uptake of internet-enabled devices and data services."
• Safety and security: "Concerns about safety and security, including online harassment or cyberbullying, misinformation, disinformation and fraud, are preventing people going online and having a positive internet experience. Appropriate mechanisms and frameworks that recognize these online risks should be put in place to help build consumer trust. Stakeholders should provide users, especially women, with the tools to increase their knowledge and skills to mitigate online risks."
• Relevance: "Local digital ecosystems in many LMICs remain underdeveloped and under-resourced. Investment in local digital ecosystems and an enabling policy environment can accelerate growth in local content, services and applications that meet the needs of people and in their own language."
• Access: "Using the internet depends on enablers such as electricity, formal identification, sales agents and accessibility features. Stakeholders can increase mobile internet adoption by focusing on, for example, facilitating inclusive and transparent registration processes for mobile, and making services, sales channels and training facilities accessible to underserved groups, such as women and persons with disabilities, alongside improving accessibility features."

I appreciate how the report addresses the importance of having reliable mobile connectivity for people to access essential services. As the GSMA points out, "In recent years, mobile operators and governments worldwide have been working on advancing digital inclusion, recognizing its transformative potential for societies. While there have been notable achievements and mobile internet adoption continues to grow, this report shows that progress has slowed. Furthermore, with an ongoing cost-of-living crisis, many are now further at risk of remaining unconnected."

What are your recommendations on how to bridge the digital divide?

​Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

5G to Benefit the Sub-Saharan Africa Economy by $11 Billion in 2030

In its annual report on the state of the mobile economy in sub-Saharan Africa, the GSMA says the mobile connectivity on the continent "continues to drive digital transformation and socioeconomic advancements. This underlines the need for continued efforts to address the persisting barriers that impact mobile internet adoption in the region, particularly the affordability of devices, online safety concerns and the lack of digital skills." The UK-based organization that represents the interests of mobile operators worldwide adds: "Meanwhile, authorities and enterprises see an opportunity to leverage growing 4G and 5G networks, alongside emerging technologies such as AI and IoT, to enhance productivity and efficiency in service delivery."

Findings of the report, which is available in English and Français, include:

Growing 5G momentum

"In 2022, there was a marked uptick in 5G-related activities in Sub-Saharan Africa, including 5G commercial launches in 15 countries and a growing number of spectrum allocations. This comes at a time when 3G is the most dominant technology in the region (accounting for 55% of total connections in 2022) while 4G is already dominant in other regions, implying network and customer readiness for the transition to 4G. The approach to 5G in the region will need to consider the current connectivity landscape and unique market features that could affect the rollout and adoption of the technology. 5G network ecosystem players in the region must also find ways to deliver cost-effective and efficient 5G networks, balancing investment and value creation."

Steering growth with AI

"The emergence of new AI tools and use cases is accelerating the implementation of AI across various verticals and business processes. Most AI developments are occurring in advanced markets. However, the technology can be utilized in any scenario where there is sufficient data to draw insights. As a result, several industry players are already taking steps to apply AI across a variety of use cases in Sub-Saharan Africa. The potential benefit of AI in the region is significant, given that it can help offset the impact of limited resources and poor infrastructure in the delivery of many life-enhancing services, such as healthcare and education. Mobile operators in the region have employed AI at different levels, from improving network operations and customer services to achieving efficiencies and cost savings."

Climate-related risks spur circular economy principles

"The concept of circularity has risen to the top of the agenda for policymakers and industry players in light of growing concerns around the generation of e-waste and unsustainable levels of consumption of natural resources. Although the technical lifespan of a mobile device is now between four and seven years, the average use period of mobile devices is only around three years. Governments and industry players have a role to play in incentivizing consumers. This includes building new channels and suppliers to collect, refurbish and resell devices and implementing awareness campaigns on sustainability. Some operators in Sub-Saharan Africa are already taking a lead in this regard, with initiatives to drive circularity in mobile phones and other digital devices."

Infographic: GSMA

Improving smartphone access

"Smartphone affordability is a key barrier to using mobile internet. The average selling price of smartphones in Africa has reduced significantly in recent years, with an influx of devices priced at below $100 – but the cost remains unaffordable for many. The challenge for manufacturers is to produce devices at low enough price points that align with local earning capacities and allow them to gain market share. To ease the current cost burden, operators offer a range of initiatives, including device financing plans, instalment payments and entry-level smartphones through partnerships with manufacturers."

Collaboration and innovation in fintech is on the rise

"Fintech has become increasingly prominent in Sub-Saharan Africa, driven by the need to improve regional financial and digital inclusion. The industry has seen a rise in partnerships and innovation, leading to the diversification of products on offer, particularly in the payments segments. Operators have partnered with ecosystem players to expand products and offer options such as buy now, pay later (BNPL). At the same time, the growing fintech startup industry continues to attract investors, allowing them to improve access to a variety of financial products for both individuals and small businesses, such as microlending and B2B payments."

Policies for safe and inclusive development

"As cyberattacks continue to grow in scale and scope, governments face increasing pressure to protect their citizens and infrastructure and establish a framework for the mobile industry. Sub-Saharan Africa's rapid technological evolution makes the region an attractive target for fraud and cyberattacks."

Infographic: GSMA

According to the GSMA, "5G is expected to benefit the Sub-Saharan Africa economy by $11 billion in 2030, accounting for more than 6% of the overall economic impact of mobile." While it is encouraging to learn that mobile connectivity in Sub-Saharan Africa continues to drive digital transformation and socioeconomic advances, I have concerns about the mobile internet usage gap, which refers to individuals who are not using mobile internet despite living in an area covered by mobile broadband networks. of 59%. Nevertheless, the continent holds significant opportunities for entrepreneurs to develop innovative solutions in AI, IoT, cybersecurity, EdTech, fintech, digital health, e-commerce, and enterprise services.

What opportunities are you seeing the Sub-Saharan Africa's mobile economy?

​Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Digitally Enabled Climate Finance Can Help LMICs Reduce Emissions and Adapt to the Impacts of Climate Change

Having engaged in the climate finance and technology sectors over the past several years, I agree with the GSMA that "Climate finance has increasingly taken center stage in debates about the future of climate action. For low- and middle-income countries (LMICs) to reduce emissions, significant financial support is needed to transition to low-carbon economies and adapt to the impacts of climate change." The UK-based organization notes in a new report that provides an overview of how mobile and digital technology can be used to facilitate and accelerate climate finance, "While disruptive technologies offer great promise, they require an enabling ecosystem and robust financing to be successful."

The report's Executive Summary importantly points out: "The use of mobile and digital technologies in delivering climate finance to underserved communities shows excellent promise. Emerging solutions moving climate finance forward include frontier technologies, such as the Internet of Things (IoT) and blockchain, as well as the voluntary carbon market (VCM).

The report's other main conclusions include:

Defining climate finance: "The research highlighted that the public and private sectors define climate finance differently. This has an impact on the level, quality and priority of investment in climate change. Understanding the various definitions of climate finance is also key to creating an inclusive ecosystem in which all actors can execute their mandates, including the mobile and digital technology community. The knowledge and technical expertise required for climate finance can be enhanced based on agreed definitions, and will help to develop tailored products, services and capacity building tools."

Building knowledge and technical expertise in digitally enabled climate finance: "Climate finance is a new, complex and contested field. Digitally enabled climate finance has added a layer of complexity because it incorporates technology in both climate action and climate financing. As a result, there is a gap in knowledge and technical expertise, which are key to developing solutions and accelerating climate finance for those most impacted by climate change."

Developing digital infrastructure and ecosystems in LMICs: "The deployment and delivery of climate finance via mobile and digital technologies depends on strong digital infrastructure. However, there are numerous barriers to the development of this infrastructure."

Improving access to quality data: "Digital technology needs to be integrated in climate finance to ensure quality data. However, in LMICs, there are data-related barriers that make it difficult to attract investment and compete for access to climate financing."

Reaching underserved populations: "Underserved groups in LMICs, especially women, are the least likely to access and use mobile technology. This is due to a variety of reasons, including the affordability of handsets and data, a lack of digital skills and social norms. Since these groups tend to be the most vulnerable to the impacts of climate change, solutions need to be tailored specifically to their needs and access to technology."

The development of carbon markets: "[T]he adoption of Article 6 and Article 6.4 of the Paris Agreement, which outline the development of a VCM, has sparked interest in this innovative climate financing mechanism. However, there are persistent implementation challenges, largely due to complex and immature markets."

I appreciate how the report showcases models and best practices for how mobile and digital technologies can ensure vital funds reach the most vulnerable people and communities. In doing so, it demonstrates the opportunities for transformative technologies to help counter the climate crisis. While climate finance is relatively new, research presented in the report "shows that mobile and digital technology are uniquely positioned to provide tools that catalyze and strengthen how it is delivered." The report also "offers a preliminary assessment of digitally enabled climate finance to guide public and private sector actors, including financial institutions and mobile network operators (MNOs). In doing so, it seeks to support the delivery of innovative solutions and partnerships that serve communities most affected by climate change."

The GSMA also produced a webinar that discussed the future of climate action and the role of mobile and digital technology in delivering climate finance in LMICs.

If finance is at the heart of tackling the climate change crisis, then what are your recommendations of how to use mobile and digital technologies to ensure vital funds reach the most vulnerable people and communities?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Mobile Connectivity Is a Lifeline for Society

In its latest report that provides insights on the state of the mobile economy worldwide, the GSMA says "Mobile connectivity continues to be a lifeline for society, helping the most vulnerable people in areas affected by conflict and natural disasters to stay connected. It is also enabling advanced connectivity capabilities needed by verticals to innovate amid diverse political, social and macroeconomic headwinds."

The UK-based organization representing the interests of mobile operators worldwide adds that "By the end of 2022, over 5.4 billion people globally subscribed to a mobile service, including 4.4 billion people who also used the mobile internet." The report notes that "The mobile internet usage gap has narrowed markedly in the last five years – from 50% in 2017 to 41% in 2022 on average – but still remains significant and demands urgent attention from all stakeholders."

What is more, "In 2022, mobile technologies and services generated 5% of global GDP, a contribution that amounted to $5.2 trillion of economic value added, and supported 28 million jobs across the wider mobile ecosystem. 5G will underpin future mobile innovation and services, building on ongoing deployments and adoption. 5G adoption will reach 17% this year, rising to 54% (equivalent to 5.3 billion connections) by 2030. The technology will add almost $1 trillion to the global economy in 2030, with benefits spread across all industries."

Key trends shaping the mobile ecosystem include:

• 5G consumer monetization comes into focus: "Throughout 2023, some 30 new markets will launch 5G services; importantly, many of these will be developing markets across Africa and Asia, making 5G a truly global trend. As 5G adoption continues to scale, the monetization imperative will grow."
• Private 5G builds momentum: "Private wireless solutions are back in vogue, as 5G's enhanced capabilities allow deployments to move beyond low-profile niche offerings."
• Mobile industry shifts towards circularity: "Across the telecoms ecosystem, sustainability has extended beyond corporate social responsibility to become a core strategic priority. Industry players are increasingly adopting a model of production, service offering and consumption that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products for as long as possible."
• The metaverse continues to gain traction: "Momentum for the metaverse continues to grow, alongside advancements in enabling technologies like 5G, AI and wearables. The growing interest from key stakeholders and ecosystem players has led to the emergence of important building blocks for the advancement of the metaverse, notably content and applications, standards and devices, which will be at the forefront of activities in 2023."
• Fintech presents opportunities for mobile industry players: "Fintech has transformed the way financial services cater to consumers and businesses alike. Although investor sentiments fell sharply in 2022 after record funding the previous year, the fundamentals of growth – including high demand, digital-centric lifestyles and enabling regulations – remain strong."

The report also highlights the following statistics:

• There were 5.4 billon unique mobile subscribers in 2022, rising to 6.3 billion by 2030;
• Globally, there were 4.4 billion mobile internet users in 2022, equivalent to 55% penetration;
• 5G will overtake 4G in 2029 to become the dominant mobile technology by the end of this decade;
• 5G adoption will be over 85% in the top 5G markets by 2030, led by the six Gulf Cooperation Council states (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates), developed Asia Pacific, and North America;
• There will be 9 billion smartphone connections by 2030, equivalent to 92% of total connections;
• Globally, smartphone data traffic will rise more than threefold in the period to 2028, with the biggest users in North America and Northeast Asia;
• The total number of licensed cellular IoT connections will double to 5.3 billion by 2030, with Greater China accounting for two-thirds;
• Revenue growth is expected to remain in positive territory in both developed and developing regions for the period to 2030;
• At the end of the decade, mobile's economic contribution will surpass $6 trillion; and
• The fiscal contribution of the mobile ecosystem reached $530 billion in 2022.

Infographic: GSMA

As for the mobile industry's impact on the 17 UN Sustainable Development Goals (SDGs), the GSMA explains that "There are now 11 SDGs where mobile's contribution is over 50, compared to six SDGs in 2020 and none in 2015." Furthermore, "The mobile industry continues to achieve its highest impact on SDG 9: Industry, Innovation and Infrastructure, driven by the reach of mobile networks and take-up of mobile internet services."

The report encouragingly adds that "The biggest improvements were recorded in the industry's contribution to SDG 1: No Poverty, SDG 2: Zero Hunger and SDG 4: Quality Education. This is due to the increasing proportion of people using mobile for activities such as accessing government services, applying and searching for jobs, and obtaining educational information for themselves or their children." The GSMA also notes that there was "an improvement in the affordability of mobile data and devices. This comes after affordability worsened in 2020 because of the decline in per capita income due to the Covid-19 pandemic."

What aspects of the report did you find of particular interest?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

ITU Report: Internet More Affordable and Widespread, but World's Poorest Still Shut Off From Online Opportunities

In its latest annual report measuring digital development, the International Telecommunication Union (ITU), the United Nations specialized agency for information and communication technologies (ICTs), says an estimated 5.3 billion people of the earth's 8 billion are using the Internet in 2022, or roughly 66 percent of the world's populations. However, the gender digital divide continues to exist as only 63 percent of women were using the Internet in 2022 compared to 69 percent of men. "This means there are 259 million more men than women using the Internet in 2022," the report notes.

The ITU also finds that youth aged 15-24 years are the driving force of connectivity, with 75 percent of young people worldwide now able to use the Internet.​ The report encouragingly points out: "There are signs that the generational gap is shrinking. In 2020, the difference between the penetration rate among young people (71 percent) and the rest of the population (57 percent) was 14 percentage points."

What is more, "In all regions of the world, people aged between 15 and 24 are more connected than people who are older or younger than that. Universality, defined as more than 95 percent Internet use, has already been reached in this age group in high-income and upper-middle-income economies. The biggest gap in relative terms is observed in low-income economies, where 39 percent of young people use the Internet, compared with only 23 percent for the rest of the population."

With respect to mobile subscriptions, the report says almost three-quarters of the global population aged 10 and over now own a mobile phone. "Internet use is becoming as ubiquitous as mobile phones. Accordingly, the number of mobile-broadband subscriptions is rapidly approaching the level of mobile-cellular subscriptions, which is plateauing."

Despite the ubiquitousness of mobile phone use, "low levels of ICT skills hamper progress to universal and meaningful connectivity," the report importantly notes. "A low level of ICT skills is one of the main barriers to achieving universal and meaningful connectivity."

As for the affordability of ICT services, the report finds that global median price of mobile-broadband services dropped from 1.9 percent to 1.5 percent of average gross national income (GNI) per capita. However, the report explains that "the lack of affordability continues to be a key barrier to Internet access particularly in low-income economies, even though this country group witnessed a nearly two-percentage-point drop in the income-adjusted price of mobile broadband services." Furthermore, "A wide gap remains between high-income economies and the rest of the world. Compared to median prices that are paid in high-income economies, the basket costs nearly 10 times as much in lower-middle-income economies and nearly 30 times as much as in low-income economies, after adjusting for differences in GNI per capita."

​​​

I appreciate how ITU's annual Facts and Figures report offers an independent and rigorously researched snapshot of the state of digital connectivity worldwide. As Doreen Bogdan-Martin, who was elected as ITU's Secretary-General subsequently after the report's publication, wrote: The report "serves as a key element in global efforts to 'connect the world' and bring universal meaningful connectivity to everyone, everywhere. Accurate data are essential: to be sure our policies and projects are having a real impact on bridging the digital divide, we need to constantly track core connectivity indicators, and drill down into the data to reveal both unexpected sticking points, and surprising successes." She adds that "ITU data are relied upon, not just by the broader UN system, but by governments, the global technology sector, development financing institutions, and the many grassroots organizations working to promote digital inclusion within their communities."

What recommendations do you have for increasing digital inclusion and promoting online opportunities?

​Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Report Provides Recommendations for Closing Mobile Internet's 'Usage Gap' and Getting More People Online

In the latest version of its annual report of the state of mobile internet connectivity, the GSM Association (GSMA) notes that "By the end of 2021, 4.3 billion people were using mobile internet, an increase of almost 300 million since the end of 2020. Growth in mobile internet adoption has almost entirely been driven by people living in low- and middle-income countries (LMICs). As a result, for the first time, half of the population in LMICs is using mobile internet."

Funded by the UK Foreign, Commonwealth and Development Office (FCDO) and the Swedish International Development Cooperation Agency (Sida) via the GSMA Mobile for Development Foundation, the UK-based organization, which represents the interests of mobile operators worldwide, explains that the findings of its "report are based on the GSMA Consumer Survey and the GSMA Mobile Connectivity Index (MCI), along with a range of other industry reports. The GSMA Consumer Survey has been carried out every year since 2017 to understand access and use of mobile and mobile internet in LMICs." What is more, "This report presents the latest updates on mobile internet connectivity globally and by region, with a focus on LMICs, where 94% of the unconnected population live. For the first time, it also presents the data on connectivity for adults only. The report then examines mobile broadband coverage and infrastructure."

The report's key findings include:

• Mobile internet use has reached 55% of the world's population.
• Mobile broadband coverage continues to slowly expand, with 95% of the world's population covered by a mobile broadband network.
• At the end of 2021, there were 3.2 billion people living within the footprint of a mobile broadband network but not using mobile internet.
• Connectivity varies significantly by different socioeconomic groups and by country income levels, with 94% of the 'unconnected' living in LMICs.
• Across all regions, there are now more mobile connections using 3G or 4G/5G smartphones than basic or feature phones.
• Data usage and network quality continue to increase – but with a persistent gap between high- and lower-income countries.
• Across the surveyed countries, mobile internet users are using their mobile phones more frequently for a range of online activities.
• Awareness of mobile internet continues to grow but has slowed significantly since 2019.
• Affordability and skills remain the two greatest barriers to mobile internet adoption and use.
• Across LMICs, affordability of data has continued to improve but affordability of entry-level internet-enabled handsets has remained relatively unchanged.

The report correctly notes that a collective effort is needed to bridge the digital divide. "Strong collective effort is needed to achieve meaningful connectivity, which allows users to have a safe,  satisfying, enriching and productive online experience that is affordable. It requires informed, targeted action by all stakeholders, including mobile operators, policymakers, international partners and the broader private sector." Crucially, "Such strategies should factor in the structural issues underpinning the disparities in adoption and use, such as differences in income and education levels, and restrictive social norms."

The GSMA concludes its report by presenting the following barriers that should be addressed to bridge the digital divide:

• Knowledge and digital skills: Improving digital skills and literacy, as well as driving awareness and understanding of mobile internet and its benefits, is critical to increase digital inclusion. Digital skills initiatives should focus on the life needs and circumstances of users.
• Affordability of handsets and data: Affordability of handsets and data remains a key challenge. Approaches to improve affordability should include efforts to lower the cost of internet-enabled handsets and data, innovative data pricing strategies and handset financing options, in addition to providing targeted subsidies and tax policies that promote the uptake of internet-enabled devices and data services.
• Relevance: Local digital ecosystems in many LMICs remain underdeveloped and under-resourced. Investment in local digital ecosystems and an enabling policy environment can accelerate growth in local content, services and applications that meet the needs of people in their communities, in their own language.
• Safety and security: Concerns about safety and security, including online harassment or cyberbullying, misinformation, disinformation and fraud, are keeping people from going online and having a positive internet experience. Stakeholders should provide users, especially women, with the tools to increase their knowledge and skills to mitigate online risks. Appropriate mechanisms and frameworks that recognize these online risks should be put in place to help build consumer trust.
• Access: Using the internet depends on enablers such as electricity, formal identification, sales agents and accessibility features. Stakeholders can increase mobile internet adoption by focusing on, for example, facilitating inclusive and transparent registration processes for mobile, and making services, sales channels and training facilities accessible to underserved groups, such as women and persons with disabilities, alongside improving accessibility features.

I agree with the premise that ensuring people are able to use mobile internet, rather than focusing purely on network coverage, is the key to driving digital inclusion for 3.2 billion people worldwide. While this number impressively represents the equivalent of 40 percent of the world's population who are covered by a mobile broadband network, more must be done to reduce barriers that prevent them from getting online or what the industry calls the 'usage gap.'

What are your recommendations for eliminating the usage gap?

By the way, I recommend watching a webinar the GSMA produced that includes a discussion with the report's authors.

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.