TELCO Use Device Financing To Reach 500 Million More Users

The telecom executives and regulators expressed their mixed feelings with respect to the single most important lever to connect Africa’s next 500 million users, which is that of device affordability and financing. In the same vein they contend that without smartphones, investments in network infrastructure and digital services won’t pay off.

Three countries in Africa, which are Nigeria, Egypt, and South Africa, alone accounted for more than 250 million of the estimated 550 million internet users in Africa in 2025, according to several recent assessments (including Statista-based country-level aggregations).

Speaking at a panel at GITEX Africa in Morocco titled “Closing the Usage Gap: Profitable Models for the Next Half-Billion,” telecom executives stated that limited access to reasonably priced internet-enabled devices, rather than a lack of network coverage, is increasingly impeding the continent’s digital expansion.

Lanre Ore, the CEO of FiberOne, stated that telecom companies need to reconsider their conventional investment objectives if they want to significantly increase the number of subscribers.

He further went ahead to declare that if he had to wager his entire budget on one thing, it would be inexpensive devices.” “Building all the infrastructure in the world won’t be worth it if people can’t use it.”

The smartphone option, whose adoption is still unequal in many African markets, especially among low-income groups.

Despite the fast expansion of mobile broadband networks over the past ten years, millions of people are still offline because of the high initial cost of devices compared to income levels.

Ore contended that finance programs and device subsidies, such as bundled service contracts and instalment payments, might greatly reduce this barrier.

Speaking at length at the program, he further declared that everything takes place at the centre of the device, where data usage is impossible without a smartphone, and digital services cannot grow without data usage.”

Also, the industry estimates that, in order to connect the next generation of users, demand-side interventions, especially those that increase consumer affordability, like low-income user subsidies and creative pricing models that make digital services to an extent be more accessible, will need to replace infrastructure-heavy strategies.

Executives emphasized that without more extensive legislative changes, device financing would not be adequate on its own. Amara Brewah, Director-General of the National Communications Authority, also emphasized that in order to draw in long-term investment, authorities must establish stable and predictable settings.

Brewah continued to stress the need for a good model that has to take into account all the factors, not just the cost of data or just devices, but also the cost of services and from a regulatory standpoint, the need to establish a supportive environment that inspires confidence in investors.

This includes long-term policy stability, predictable spectrum price, and open licensing regimes. Brewah asserts that where regulatory risks are reduced, investors are more inclined to contribute resources.

“It gives investors the peace of mind to invest if they see stability around regulation,” she stated.

The panel debate brought to light the industry’s growing worry that many government policies continue to be unduly focused on generating short-term revenue through taxes, tariffs, and spectrum fees rather than promoting long-term sector growth.

Ore had criticized what he called a “revenue-first” strategy, claiming that it can hinder investment and eventually reduce government revenue.

Ore stated that these decisions are being made based on revenue, which should not be the case. “Investors will come in, services will grow, and governments will actually make more money through increased economic activity and taxation if governments create the right environment.”

He also cited some strategies to cut operators’ cost base, such as lowering spectrum prices and promoting alternative energy alternatives, such as green electricity for telecommunication infrastructure. He said that lower operational costs will result in increased adoption rates and more reasonably priced services for customers.  

According to Ore, lower consumer prices drive higher subscription rates, which in turn boost government revenues. This perspective comes as African telecom operators face slowing revenue per user in saturated urban markets and look to underserved rural areas, where low incomes often limit profitability despite large populations.

To address this, executives advocated redefining success metrics. Ore urged a shift from short-term revenue per user to long-term value creation, including customer lifetime value, engagement, and ecosystem revenue, especially important in emerging markets where returns may take years.

Panelists also highlighted convergence with fintech, entertainment, and e-commerce as traditional voice revenues decline. Brewah called for moving beyond connectivity, citing deeper integration of mobile money and digital lending, a model already gaining traction in East Africa.

On AI, Ore noted improved efficiency and customer experience at lower cost but acknowledged trade-offs, including potential job displacement.

Still, the panel agreed that device access remains the top priority. Without it, goals around digital and financial inclusion are unattainable. Ore advocated targeted subsidies, while others stressed device financing, supported by regulation and service quality.

This focus addresses the “usage gap” coverage versus actual use. Closing it, executives said, requires coordinated action and long-term thinking. As Brewah concluded, the model must work for governments, investors, and consumers to endure.

Maintaining the sub-$40 price target is challenging due to economic volatility caused by currency fluctuations and high inflation in markets like Nigeria. In addition to manufacturing costs, there has been an increase in the ongoing global semiconductor shortages, even though 64% of Africa’s population has mobile coverage with only about 25% currently using mobile internet, indicating that affordability rather than infrastructure is still the main obstacle.