GSMA: The US$3.5tn Prize: Unlocking the Next Billion
In the telecommunications sector, the narrative of the last decade has primarily focused on infrastructure: rolling out 4G, establishing 5G networks and ensuring towers reach the remotest corners of the globe. However, as the physical infrastructure gap closes, a more complex challenge has emerged. It is no longer merely a question of coverage, but of usage.
Max Cuvellier Giacomelli, Head of Mobile for Development at the GSMA, is a figure who sits squarely at the heart of the shift.
Having begun his career in telecoms strategy consulting before joining Orange’s Middle East and Africa innovation unit, he has spent years designing products to unlock new opportunities for both affiliates and users.
“When I joined the GSMA in 2012, I found a community equally committed to using mobile technology to create sustainable, lasting change,” he explains.
“I moved into my current role as Head of Mobile for Development, where I lead an incredible team of more than 130 people operating at the intersection of the mobile ecosystem and the development sector.
"With partners, we focus on driving innovation and delivering both sustainable business and large-scale socio-economic impact to empower underserved populations.”
The impact is tangible. “To date, the initiatives we have supported have reached more than 260 million people in low- and middle-income countries, helping to bridge the digital divide and unlock opportunities, but there’s still a lot more work to do.”
The collaboration imperative
One of the primary hurdles to closing the divide is the cost of hardware. In emerging markets, the price of a smartphone remains a prohibitive barrier to entry.
Addressing it means a level of cooperation that is counterintuitive in a hyper-competitive industry: getting rivals like Airtel, MTN and Orange to sit at the same table.
“As a global organisation, we bring the mobile ecosystem together to discover, develop and deliver innovation with a positive impact on both the industry and society,” says Max.
“This makes us uniquely positioned to convene organisations that might be competing in other areas around important shared challenges.
"While competition exists between operators, when faced with a market-limiting barrier such as handset affordability, industry collaboration becomes essential,” he adds
The logic is stark. You cannot compete for a customer who cannot afford to come online.
“Overcoming barriers like this could help the more than three billion unconnected people globally come online and gain access to essential services, such as healthcare, financial services, education, skills and employment, as well as bringing new customers to the market.”
Defining the affordable smartphone
The GSMA’s recent work in Africa serves as a prime use case for the collaborative approach. The goal was not simply to drive down price, but to maintain usability standards.
“One of our recent initiatives in Africa saw industry leaders come together to propose a baseline set of minimum requirements for an affordable entry-level 4G smartphone to accelerate digital inclusion across the continent,” he notes.
“These requirements will ensure affordable smartphones remain viable, long-lasting and provide the performance required to participate in today’s digital society, but at a significantly reduced cost.”
The potential volume growth is immense. “A US$40 smartphone could bring mobile internet to 20 million additional people in Africa, while a US$30 handset could connect up to 50 million.”
However, Max highlights that the process requires nuance, particularly regarding local economic realities. “In Africa, where an entry-level device costs 87% of average monthly income for the poorest 20%, we’re not just talking about lowering prices. We’re convening major operators with phone manufacturers to agree on baseline specifications that work for the realities of African people and the realities of those businesses involved.”
The initiative “sends a powerful signal to manufacturers and policymakers on the region’s shared objectives to bridge the digital gap, demonstrating the commercial viability of affordable device production at scale, while showcasing the importance of industry collaboration in action.”
The economic case for government
While operators can adjust specifications and margins, governments hold the keys to fiscal policy.
Import duties and VAT on devices can artificially inflate costs, counteracting industry efforts to lower them. The GSMA’s strategy involves presenting connectivity not just as a service, but as an economic engine.
“Connectivity is foundational infrastructure that enables broader economic and social development much beyond the mobile industry,” Max argues. “Our State of Mobile Internet
"Connectivity report shows that closing the Usage Gap by 2030 could generate US$3.5 trillion in additional GDP. Mobile-enabled technologies represent one of the most pragmatic solutions to efficient development delivery, acting as a force multiplier that amplifies the impact of every other effort.”
The process means active lobbying and education. “We’re engaging governments to show why removing taxes on entry-level devices is an investment in their digital economies, not lost revenue.
"And we’re demonstrating how accessible finance, digital literacy and relevant local content all work together to make connectivity meaningful.”
He points to specific successes in the financial sector as proof of concept. “Take mobile money platforms in Kenya, for example.
"They have helped lift 194,000 households out of poverty, providing not only individuals with access to financial services and skills permanently, but also unlocking wider economic returns for the country.”
Addressing the usage gap
Even if the hardware becomes affordable, the industry faces a startling statistic: the ‘Usage Gap’ is now significantly larger than the coverage gap.
“Handset affordability is a critical barrier to getting the 3.1 billion people online and using the internet meaningfully, which our recent State of Mobile Internet Connectivity 2025 report found remains unconnected,” Max says.
“But focusing on this alone will not resolve digital exclusion. Having an affordable device is just the first step. Low digital literacy, limited relevant content, safety concerns and infrastructure gaps, such as unreliable electricity, also remain key barriers to enabling connectivity and must be addressed,” he adds.
The data support the shift in focus. “All of these issues clearly point to a usage problem, with the Usage Gap now 10x the size of the Coverage Gap, as 96% of the global population is now in fact covered by mobile internet.
They simply aren’t all able to use it. And this is the core development issue we are set to tackle.”
The GSMA has responded with educational programmes like the Mobile Internet Skills Training Toolkit (MISTT). “And we are making progress. The GSMA’s Mobile Internet Skills Training Toolkit (MISTT) has upskilled more than 80 million people in more than 40 countries, providing free resources to learn the basic mobile digital skills needed to access and use mobile internet.
"Similarly, we’ve seen nearly 60% of mobile money providers introduce digital skills initiatives alongside their services, seamlessly integrating genuinely useful solutions to target critical Usage Gap barriers.”
Furthermore, the rapid rise of AI offers both a challenge and a solution to content relevance.
“As AI continues to accelerate, it is key that we ensure this becomes part of the solution and not another barrier. Used positively, it can, in fact, support the creation of services in local languages and accessible, relevant content for underserved communities, which we’re seeing with partnerships such as those with VEON, Beeline Kazakhstan and the Barcelona Supercomputing Center.
"It is why local markets play a central role in designing AI language models and AI solutions more broadly, but also take part in international dialogues around responsible AI or AI regulation, ensuring everyone is fully represented in our global digital future.”
Development is business
Ultimately, the work of the Mobile for Development unit highlights that social impact and business growth are inextricably linked.
“Digital connectivity is still too often overlooked in humanitarian and development programming, despite the power of connectivity to reduce inequalities and tackle big societal challenges, from gender inclusion to climate change,” Max observes.
He adds: Through working at the intersection of the mobile ecosystem and the development sector, we can stimulate digital innovation that delivers both sustainable business and large-scale socio-economic impact for underserved communities.”
The transformation of financial systems in the developing world is the strongest evidence of the synergy between these two factors. “If we look at mobile money, for example, this is connectivity empowering all through digital finance.
"By creating a sustainable digital financial ecosystem in developing countries, we can reach the most vulnerable individuals and enable them to build better and more resilient lives and communities.
"Mobile money connected more than 2 billion people to formal financial services in 2024, equating to US$1.68 trillion in digital transactions.
"Sub-Saharan Africa has quickly become the epicentre for mobile money, with 1.1 billion accounts registered and US$1.1 trillion transacted, revealing the new opportunities that can be unlocked for people to earn, save and spend.”
A connected future
Looking ahead, the metrics for success are evolving. It is about depth of usage, not just reach.
“Mobile connectivity isn’t just about signal strength and data speeds anymore. It’s about connection, being part of a community and participating fully in the modern economy.
"Through ensuring everyone has access to mobile connectivity, we can reduce inequality, build resilience and create opportunities for billions,” he adds
For the GSMA, the roadmap for the next five years is clear. “As the GSMA, one of our goals is to collectively bridge the Usage Gap and achieve true connectivity for everyone.
"Closing this gap is about more than just getting people online. It’s about meaningfully improving the lives of underserved communities and enabling them to be part of the modern economy and digital world.”
To achieve this, the industry must continue to look beyond competition and toward creating an ecosystem.
“Closing the Usage Gap will require the right enabling policies, investment and collaboration across industry, government and the private sector to prioritise mobile connectivity as a core development issue.”
