A push by a coalition of telecom operators, device makers, and industry groups to bring $40 smartphones to market — a price point seen as key to getting tens of millions more people online — is gathering momentum, but questions remain over whether manufacturers can produce such ultra-low-cost devices at scale.
This week at Mobile World Congress in Barcelona, the advocacy and lobbying group GSMA said it is working with major African mobile operators — including Airtel, Axian Telecom, Ethio Telecom, MTN Group, Orange, and Vodafone — and smartphone makers to pilot ultra-low-cost 4G devices in six African markets: the Democratic Republic of the Congo, Ethiopia, Nigeria, Rwanda, Tanzania, and Uganda, in a bid to make smartphones more affordable and bring an additional 20 million people online.
Affordable smartphones are widely seen as key to narrowing the digital divide in developing markets, where millions of people live within mobile broadband coverage but remain offline, often because internet-enabled devices remain too expensive. Through its Handset Affordability Coalition, the GSMA is working with operators and manufacturers to promote devices priced around $40 to help close that gap.
The initiative remains in early stages, with commercial negotiations underway between mobile operators and smartphone manufacturers to develop devices meeting the targeted price range.
The GSMA has engaged with more than 15 smartphone manufacturers as part of the effort, with seven companies expressing interest in supporting the initiative, Alix Jagueneau, the group’s head of external affairs, told TechCrunch.
“The $30–$40 price point is an ambition, based on GSMA intelligence research on affordability and is to be understood as a best effort intent,” Jagueneau said, adding that rising memory costs are adding urgency and complexity to the effort.
The final price of such devices will depend on a combination of factors, including financing schemes and tax policies, Jagueneau told TechCrunch. Development banks, donors, and other financial institutions could help reduce risks for mobile operators investing in the devices. At the same time, import duties and taxes on smartphones — sometimes treated as luxury items — can add as much as 30% to handset prices in some markets, Jagueneau said.
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The GSMA has not confirmed which manufacturers will produce the devices, with Jagueneau saying commercial discussions with smartphone makers are still ongoing. However, the group hopes initial proof-of-concept devices could be produced this year, with early consumer offerings potentially reaching markets by late 2026.
None of the six countries identified for the pilot program has yet committed to reducing import duties or taxes on entry-level smartphones, Jagueneau said, adding that the group is working with operators to build an ongoing dialogue with governments in the coming months.
“We believe there is an urgency for the public sector to address this part of the equation for digital inclusion purposes,” Jagueneau said. She added that the group welcomed South Africa’s removal last year of a 9% luxury excise duty on smartphones priced below R2,500 (around $150), saying more countries should take similar steps.
Thin margins and rising component costs
Analysts say the industry may struggle to produce smartphones near the $40 price point under current component cost conditions.
“Pushing smartphones priced in the $30–$40 range could have been historically feasible when memory costs were significantly lower,” said Ahmad Shehab, research analyst at Counterpoint Research.
Devices at that price would likely come with extremely basic specifications and thin profit margins, Shehab told TechCrunch, adding that securing low-capacity memory components can also be difficult as suppliers increasingly prioritize higher-capacity chips.
The average selling price of smartphones in the Middle East and Africa, per Counterpoint, stood at about $188 in the fourth quarter of 2025, highlighting the gap between current market prices and the targeted $40 level.
“Although a few brands have achieved ASP levels below $40, these sales volumes remain negligible and are largely absent from major global vendors,” Shehab said.
Attempts to bring ultra-low-cost smartphones to emerging markets have faced challenges before. In 2014, Google launched the Android One initiative to promote affordable smartphones in markets including India, Pakistan, Bangladesh, and Indonesia before expanding the program to Africa in 2015. However, it struggled to achieve widespread adoption.
Google continued the program in some markets for several years, including Japan, but it never became a dominant platform for entry-level smartphones.
Jagueneau said the effort would require coordinated action across operators, manufacturers, and governments, but added that improving access to affordable smartphones remains critical to bringing more people online.
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![FCC Chairman Wants to Repeal a Key Rule That Would Fundamentally Change Broadcast News
Federal Communications Commission Chairman Brendan Carr wants to repeal a rule that has prevented a select handful of broadcasters from taking full control of the media landscape. Back in 2004, Congress instructed the FCC to enact a national ownership cap that would bar any one broadcast station owner from reaching more than 39% of American households. For more than 20 years, the rule has kept mega mergers in the TV broadcasting industry from gobbling up the entire media ecosystem. Now, Carr is proposing to repeal that national ownership cap rule, which, if successful, would mean broadcast TV giants will pretty much have a green light for mergers, even if it meant that one company would gain access to most of the media landscape. Carr expressed his intentions in an op-ed published by the far-right organization Breitbart. In the op-ed, he claimed that the cap was once helpful in protecting local news stations, but now it was becoming an obstacle as they compete with national news, large streamers, and social media giants.
Instead of a blanket rule, Carr wants to create a new “case-by-case approach.” “Previously, the cap operated as a blanket prohibition on any and all deals that would combine stations in excess of the 39 percent limit—regardless of whether it was a good deal or a bad one for the country,” Carr wrote in the op-ed. “Our new proposal would allow the FCC to approve deals that exceed the 39 percent cap, but only if doing so would promote the public interest.”
Major broadcasters have been lobbying for a change to the rule for quite some time now. One such mega TV broadcasting company that lobbied for the rule change is Nexstar. Earlier this year, the FCC granted Nexstar a waiver for the 39% national ownership cap rule and approved its acquisition of rival Tegna. The merger is still currently facing court challenges over antitrust claims, but if it is finalized, then Nexstar is estimated to expand its reach to at least 60% of American households. Sinclair, another Trump-allied major broadcaster that was behind a particularly infamous PR debacle during Trump’s first administration, is also eyeing a merger and commended the proposed rule change as “common sense.” Both companies also famously refused to air Jimmy Kimmel’s show on their channels late last year after the late-night host’s comments about Charlie Kirk drew ire from the Trump administration.
[embed]https://www.youtube.com/watch?v=_fHfgU8oMSo[/embed] The FCC will vote on eliminating the rule on August 6th. There are three commissioners, two Republicans and one Democrat. The lone Democratic FCC Commissioner, Anna Gomez, took to X to voice her staunch opposition. “The FCC just announced it will move forward with its unlawful effort to hand control of the public airwaves to billionaire buddies of this administration,” Gomez wrote. “This will destroy local newsrooms, silence community reporting, and drive-up costs for American families.” Even if the action passes the FCC vote, it’s likely to receive pushback from both sides of the aisle in Congress. “Trump’s FCC Chair is trying to illegally rewrite the rules to make it easier for billionaires to line their own pockets while jacking up costs and controlling what Americans watch,” Sen. Elizabeth Warren said in a statement. “After rubber-stamping the Nexstar-Tegna megamerger, this looks like the Trump administration’s latest attempt to roll out the red carpet for more antitrust disasters.”
Critics believe that because the rule was created following Congress’s action, it is up to Congress to determine if it should be retired. But Carr insists that the FCC has the authority to modify or repeal the rule. #FCC #Chairman #Repeal #Key #Rule #Fundamentally #Change #Broadcast #NewsBrendan carr,broadcast television,FCC](https://i1.wp.com/gizmodo.com/app/uploads/2026/07/GettyImages-2262359639-1280x888.jpg?ssl=1 "FCC Chairman Wants to Repeal a Key Rule That Would Fundamentally Change Broadcast News
Federal Communications Commission Chairman Brendan Carr wants to repeal a rule that has prevented a select handful of broadcasters from taking full control of the media landscape. Back in 2004, Congress instructed the FCC to enact a national ownership cap that would bar any one broadcast station owner from reaching more than 39% of American households. For more than 20 years, the rule has kept mega mergers in the TV broadcasting industry from gobbling up the entire media ecosystem. Now, Carr is proposing to repeal that national ownership cap rule, which, if successful, would mean broadcast TV giants will pretty much have a green light for mergers, even if it meant that one company would gain access to most of the media landscape. Carr expressed his intentions in an op-ed published by the far-right organization Breitbart. In the op-ed, he claimed that the cap was once helpful in protecting local news stations, but now it was becoming an obstacle as they compete with national news, large streamers, and social media giants.
Instead of a blanket rule, Carr wants to create a new “case-by-case approach.” “Previously, the cap operated as a blanket prohibition on any and all deals that would combine stations in excess of the 39 percent limit—regardless of whether it was a good deal or a bad one for the country,” Carr wrote in the op-ed. “Our new proposal would allow the FCC to approve deals that exceed the 39 percent cap, but only if doing so would promote the public interest.”
Major broadcasters have been lobbying for a change to the rule for quite some time now. One such mega TV broadcasting company that lobbied for the rule change is Nexstar. Earlier this year, the FCC granted Nexstar a waiver for the 39% national ownership cap rule and approved its acquisition of rival Tegna. The merger is still currently facing court challenges over antitrust claims, but if it is finalized, then Nexstar is estimated to expand its reach to at least 60% of American households. Sinclair, another Trump-allied major broadcaster that was behind a particularly infamous PR debacle during Trump’s first administration, is also eyeing a merger and commended the proposed rule change as “common sense.” Both companies also famously refused to air Jimmy Kimmel’s show on their channels late last year after the late-night host’s comments about Charlie Kirk drew ire from the Trump administration.
[embed]https://www.youtube.com/watch?v=_fHfgU8oMSo[/embed] The FCC will vote on eliminating the rule on August 6th. There are three commissioners, two Republicans and one Democrat. The lone Democratic FCC Commissioner, Anna Gomez, took to X to voice her staunch opposition. “The FCC just announced it will move forward with its unlawful effort to hand control of the public airwaves to billionaire buddies of this administration,” Gomez wrote. “This will destroy local newsrooms, silence community reporting, and drive-up costs for American families.” Even if the action passes the FCC vote, it’s likely to receive pushback from both sides of the aisle in Congress. “Trump’s FCC Chair is trying to illegally rewrite the rules to make it easier for billionaires to line their own pockets while jacking up costs and controlling what Americans watch,” Sen. Elizabeth Warren said in a statement. “After rubber-stamping the Nexstar-Tegna megamerger, this looks like the Trump administration’s latest attempt to roll out the red carpet for more antitrust disasters.”
Critics believe that because the rule was created following Congress’s action, it is up to Congress to determine if it should be retired. But Carr insists that the FCC has the authority to modify or repeal the rule. #FCC #Chairman #Repeal #Key #Rule #Fundamentally #Change #Broadcast #NewsBrendan carr,broadcast television,FCC")
![FCC Chairman Wants to Repeal a Key Rule That Would Fundamentally Change Broadcast News
Federal Communications Commission Chairman Brendan Carr wants to repeal a rule that has prevented a select handful of broadcasters from taking full control of the media landscape. Back in 2004, Congress instructed the FCC to enact a national ownership cap that would bar any one broadcast station owner from reaching more than 39% of American households. For more than 20 years, the rule has kept mega mergers in the TV broadcasting industry from gobbling up the entire media ecosystem. Now, Carr is proposing to repeal that national ownership cap rule, which, if successful, would mean broadcast TV giants will pretty much have a green light for mergers, even if it meant that one company would gain access to most of the media landscape. Carr expressed his intentions in an op-ed published by the far-right organization Breitbart. In the op-ed, he claimed that the cap was once helpful in protecting local news stations, but now it was becoming an obstacle as they compete with national news, large streamers, and social media giants.
Instead of a blanket rule, Carr wants to create a new “case-by-case approach.” “Previously, the cap operated as a blanket prohibition on any and all deals that would combine stations in excess of the 39 percent limit—regardless of whether it was a good deal or a bad one for the country,” Carr wrote in the op-ed. “Our new proposal would allow the FCC to approve deals that exceed the 39 percent cap, but only if doing so would promote the public interest.”
Major broadcasters have been lobbying for a change to the rule for quite some time now. One such mega TV broadcasting company that lobbied for the rule change is Nexstar. Earlier this year, the FCC granted Nexstar a waiver for the 39% national ownership cap rule and approved its acquisition of rival Tegna. The merger is still currently facing court challenges over antitrust claims, but if it is finalized, then Nexstar is estimated to expand its reach to at least 60% of American households. Sinclair, another Trump-allied major broadcaster that was behind a particularly infamous PR debacle during Trump’s first administration, is also eyeing a merger and commended the proposed rule change as “common sense.” Both companies also famously refused to air Jimmy Kimmel’s show on their channels late last year after the late-night host’s comments about Charlie Kirk drew ire from the Trump administration.
[embed]https://www.youtube.com/watch?v=_fHfgU8oMSo[/embed] The FCC will vote on eliminating the rule on August 6th. There are three commissioners, two Republicans and one Democrat. The lone Democratic FCC Commissioner, Anna Gomez, took to X to voice her staunch opposition. “The FCC just announced it will move forward with its unlawful effort to hand control of the public airwaves to billionaire buddies of this administration,” Gomez wrote. “This will destroy local newsrooms, silence community reporting, and drive-up costs for American families.” Even if the action passes the FCC vote, it’s likely to receive pushback from both sides of the aisle in Congress. “Trump’s FCC Chair is trying to illegally rewrite the rules to make it easier for billionaires to line their own pockets while jacking up costs and controlling what Americans watch,” Sen. Elizabeth Warren said in a statement. “After rubber-stamping the Nexstar-Tegna megamerger, this looks like the Trump administration’s latest attempt to roll out the red carpet for more antitrust disasters.”
Critics believe that because the rule was created following Congress’s action, it is up to Congress to determine if it should be retired. But Carr insists that the FCC has the authority to modify or repeal the rule. #FCC #Chairman #Repeal #Key #Rule #Fundamentally #Change #Broadcast #NewsBrendan carr,broadcast television,FCC](https://gizmodo.com/app/uploads/2026/07/GettyImages-2262359639-1280x888.jpg "FCC Chairman Wants to Repeal a Key Rule That Would Fundamentally Change Broadcast News
Federal Communications Commission Chairman Brendan Carr wants to repeal a rule that has prevented a select handful of broadcasters from taking full control of the media landscape. Back in 2004, Congress instructed the FCC to enact a national ownership cap that would bar any one broadcast station owner from reaching more than 39% of American households. For more than 20 years, the rule has kept mega mergers in the TV broadcasting industry from gobbling up the entire media ecosystem. Now, Carr is proposing to repeal that national ownership cap rule, which, if successful, would mean broadcast TV giants will pretty much have a green light for mergers, even if it meant that one company would gain access to most of the media landscape. Carr expressed his intentions in an op-ed published by the far-right organization Breitbart. In the op-ed, he claimed that the cap was once helpful in protecting local news stations, but now it was becoming an obstacle as they compete with national news, large streamers, and social media giants.
Instead of a blanket rule, Carr wants to create a new “case-by-case approach.” “Previously, the cap operated as a blanket prohibition on any and all deals that would combine stations in excess of the 39 percent limit—regardless of whether it was a good deal or a bad one for the country,” Carr wrote in the op-ed. “Our new proposal would allow the FCC to approve deals that exceed the 39 percent cap, but only if doing so would promote the public interest.”
Major broadcasters have been lobbying for a change to the rule for quite some time now. One such mega TV broadcasting company that lobbied for the rule change is Nexstar. Earlier this year, the FCC granted Nexstar a waiver for the 39% national ownership cap rule and approved its acquisition of rival Tegna. The merger is still currently facing court challenges over antitrust claims, but if it is finalized, then Nexstar is estimated to expand its reach to at least 60% of American households. Sinclair, another Trump-allied major broadcaster that was behind a particularly infamous PR debacle during Trump’s first administration, is also eyeing a merger and commended the proposed rule change as “common sense.” Both companies also famously refused to air Jimmy Kimmel’s show on their channels late last year after the late-night host’s comments about Charlie Kirk drew ire from the Trump administration.
[embed]https://www.youtube.com/watch?v=_fHfgU8oMSo[/embed] The FCC will vote on eliminating the rule on August 6th. There are three commissioners, two Republicans and one Democrat. The lone Democratic FCC Commissioner, Anna Gomez, took to X to voice her staunch opposition. “The FCC just announced it will move forward with its unlawful effort to hand control of the public airwaves to billionaire buddies of this administration,” Gomez wrote. “This will destroy local newsrooms, silence community reporting, and drive-up costs for American families.” Even if the action passes the FCC vote, it’s likely to receive pushback from both sides of the aisle in Congress. “Trump’s FCC Chair is trying to illegally rewrite the rules to make it easier for billionaires to line their own pockets while jacking up costs and controlling what Americans watch,” Sen. Elizabeth Warren said in a statement. “After rubber-stamping the Nexstar-Tegna megamerger, this looks like the Trump administration’s latest attempt to roll out the red carpet for more antitrust disasters.”
Critics believe that because the rule was created following Congress’s action, it is up to Congress to determine if it should be retired. But Carr insists that the FCC has the authority to modify or repeal the rule. #FCC #Chairman #Repeal #Key #Rule #Fundamentally #Change #Broadcast #NewsBrendan carr,broadcast television,FCC")
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