Telecommunications executives and regulators have identified device affordability and financing as the single most critical lever to connect Africa’s next 500 million users, arguing that without access to smartphones, investments in network infrastructure and digital services will fail to deliver returns.
Multiple recent analyses (including Statista‑based country‑level aggregations) estimate that Africa surpassed 550 million internet users in 2025, with Nigeria, Egypt, and South Africa alone accounting for over 250 million of that totals.
Speaking at a panel titled ‘Closing the Usage Gap: Profitable Models for the Next Half-Billion’ at GITEX Africa in Morocco, telecom executives said the continent’s digital expansion is increasingly constrained not by lack of network coverage but by limited access to affordable internet-enabled devices.
The Chief Executive of FiberOne, Lanre Ore, said telecom operators must rethink traditional investment priorities if they are to drive meaningful growth in subscriber numbers.
“If I had to bet my entire budget on one thing, it would be affordable devices,” Ore said. “You can build all the infrastructure in the world, but if people cannot access it, that investment is wasted.”
Across many African markets, smartphone penetration remains uneven, particularly among low-income populations.
While mobile broadband networks have expanded rapidly over the past decade, millions remain offline due to the high upfront cost of devices relative to income levels.
Ore argued that device subsidies and financing schemes, ranging from instalment payments to bundled service contracts, could significantly lower this barrier. “Everything happens on the device,” he said. “Without a smartphone, there is no data usage, and without data usage, digital services cannot scale.”
Industry estimates suggest that connecting the next wave of users will require a shift away from infrastructure-heavy strategies towards demand-side interventions, particularly those that improve affordability at the consumer level, such as subsidies for low-income users and innovative pricing models that make digital services more accessible.
However, executives stressed that device financing alone would not be sufficient without broader policy reforms. The Director-General of the National Communications Authority, Amara Brewah, said regulators must create stable and predictable environments to attract long-term investment.
“A good model has to consider all the factors, not just the cost of data, not just devices, but also the cost of services,” Brewah said. “From a regulatory perspective, we have to create an enabling environment that gives investors confidence.”
That includes transparent licensing frameworks, predictable spectrum pricing and long-term policy stability. According to Brewah, investors are more likely to commit capital where regulatory risks are minimised.
“If investors see stability around regulation, it gives them the peace of mind to invest,” she said.
The panel discussion highlighted growing concern within the industry that many government policies remain overly focused on short-term revenue generation through spectrum fees, tariffs and taxes, rather than fostering long-term sector growth.
Ore criticised what he described as a “revenue-first” approach, arguing that it can discourage investment and ultimately limit government income over time.
“When these decisions are made, they are being made based on revenue and that should not be the case,” he said. “If governments create the right environment, investors will come in, services will expand, and governments will actually make more money through increased economic activity and taxation.”
He pointed to measures such as reducing the cost of spectrum and supporting alternative energy solutions, including green power for telecom infrastructure, as ways to lower operators’ cost base. Lower operating costs, he said, would translate into more affordable services for consumers and higher adoption rates.
“When consumers pay less, they subscribe more,” Ore said. “And when they subscribe more, government revenues increase.”
The discussion comes as African telecom operators face slowing average revenue per user growth in mature urban markets, pushing them to seek expansion in underserved and rural segments. However, these markets often present a paradox: while population density offers scale, low incomes limit immediate profitability.
To address this, executives called for a shift in how success is measured within the industry. Ore said operators must move beyond traditional metrics such as short-term revenue per user and instead focus on long-term value creation.
“We need to start looking at customer lifetime value, long-term engagement and ecosystem revenue,” he said. “Not just what a customer is worth today, but what they will be worth over 10 or 15 years.”
This shift, he added, is particularly important in emerging markets where early-stage investments may not yield immediate returns but can generate significant value over time as digital adoption deepens.
Panellists also pointed to the growing convergence of telecom services with adjacent sectors such as financial services, entertainment and e-commerce. As traditional voice revenues decline, operators are increasingly relying on data-driven services and digital ecosystems to sustain growth.
Brewah said this evolution requires a broader strategic rethink. “We need to move beyond being just connectivity providers and start talking about convergence,” she said. “One service alone cannot get you to where you want to be.”
In practice, this could mean deeper integration of mobile money, digital lending and other financial services into telecom offerings, an approach that has already gained traction in parts of East Africa.
The panel also touched on the role of emerging technologies such as artificial intelligence in shaping the sector’s future. Ore said pilot projects using AI in customer service operations have shown promising results, including improved efficiency and better user experience at lower cost.
“We’ve seen massive adoption and improved customer experience at a fraction of the cost,” he said.
However, he cautioned that the technology presents trade-offs. “AI is a double-edged sword. While it reduces costs, it also has implications for employment,” he said, noting that automation could displace certain roles even as it creates new opportunities.
Despite these complexities, there was broad agreement among speakers that the immediate priority remains expanding access to devices. Without that, broader ambitions around digital inclusion, financial inclusion and economic growth will remain out of reach.
As the session drew to a close, panellists were asked what single policy or business change they would prioritise to accelerate progress over the next five years.
Ore pointed again to affordability, advocating for targeted subsidies to reduce the cost of entry for new users. Other speakers echoed the importance of device financing models, describing them as essential tools for scaling adoption in price-sensitive markets.
Brewah agreed, while noting that financing must be supported by complementary policies. “Device affordability is key, but it has to be part of a broader ecosystem that includes regulation, investment and service quality,” she pointed out.
The emphasis on devices reflects a broader shift in the industry’s understanding of the usage gap, the difference between network coverage and actual internet usage. While infrastructure gaps persist in some regions, the larger challenge increasingly lies in ensuring that people can afford and effectively use the services available to them.
Closing that gap, executives said, will require coordinated action across governments, regulators and private sector players. It will also demand a move away from short-term thinking towards models that balance profitability with inclusion.
“The model has to work for everyone,” Brewah said. “Government, investors and consumers. If it does, it will stand the test of time.”