Some 3.4 billion people remain without mobile internet access despite living in areas covered by mobile broadband networks, as rising smartphone component costs threaten to make internet access less affordable in poorer countries, according to a new GSMA report.
The global telecoms industry body said urgent action is needed to reduce the cost of smartphones in low and middle-income countries so more people can participate in the growing digital economy and benefit from developments in artificial intelligence.
The findings were published in GSMA’s State of Mobile Internet Connectivity Report 2026. The report found that 4.8 billion people now use mobile internet on their own devices, while 3.4 billion remain offline despite 90% of them living within mobile broadband coverage. GSMA describes this difference as the mobile internet “usage gap”.
The pace of growth in the global digital population has also slowed. About 160 million people began using mobile internet in 2025, compared with 190 million new users in 2024.
GSMA Director General Vivek Badrinath said AI could have a significant impact on people’s lives, but access to the internet remained a basic requirement for participating in the technology’s development.
He warned that the digital divide could increasingly separate people who can afford to participate in the digital economy from those who cannot.
The report identified rising costs for smartphone memory and chipsets as a major factor behind the widening usage gap. GSMA said global demand linked to AI infrastructure and data centres had contributed to higher component prices.
Memory prices more than doubled between the third quarter of 2025 and the first quarter of 2026, followed by another increase of between 80% and 90% during the second quarter, according to the report.
Higher component costs are being passed on to consumers, putting entry-level smartphones beyond the reach of many people. GSMA said this could reverse progress made in reducing the global mobile internet usage gap.
By the end of 2025, entry-level smartphones cost people in the poorest 20% of populations in low and middle-income countries as much as 44% of average monthly income. In sub-Saharan Africa, the figure reached 76%.
GSMA expects smartphone prices to continue rising and said the market could record its largest annual decline in smartphone shipments, with emerging markets particularly exposed.
To improve affordability, GSMA is calling on manufacturers to target a $30 price for entry-level smartphones. It estimates this could make devices affordable for almost 1.6 billion additional people, while a $20 price could reach about 2.2 billion people living within mobile broadband coverage.
The organisation also urged memory and chipset manufacturers to increase the availability of lower-cost components and called for action on other barriers, including limited digital skills, literacy, security concerns and a lack of relevant online content and services.
