[DigitalToday reporter Jinju Hong] A global project to cut smartphone prices to $40, or about 50,000 won, is moving into full swing.

On March 8, local time, IT outlet TechCrunch reported that the GSMA announced a pilot programme to roll out ultra-low-cost 4G smartphones at Mobile World Congress in Barcelona, Spain.

Major African mobile operators including Bharti Airtel, AXIAN Telecom, Ethio Telecom and Vodafone are taking part. The pilot will be carried out in six countries: the Democratic Republic of Congo, Ethiopia, Nigeria, Rwanda, Tanzania and Uganda. If successful, GSMA expects about 20 million people will newly gain access to the internet.

GSMA is holding talks between mobile carriers and smartphone makers through the Handset Affordability Coalition, a global alliance it leads to improve smartphone access for low-income groups worldwide and narrow the digital divide. About 15 manufacturers have shown interest so far, it is known. Alix Jagueneau (알릭스 자게노), head of external affairs at GSMA, explained: "The $30 to $40 price range is a target based on GSMA research, and we are working to make it happen."

Actual prices are likely to vary depending on financing structures and tariff policies. In some countries, smartphone import tariffs reach up to 30 percent, which could sharply reduce the impact of price cuts. GSMA is also considering ways to reduce investment risk with support from development banks and financial institutions.

An initial concept model is aimed for production this year, and a consumer product is expected to be launched at the end of 2026. However, participating manufacturers have not been disclosed so far, and commercial discussions with companies are under way.

Manufacturers are taking a cautious stance on the project's feasibility. Ahmad Shehab (아흐마드 셰합), an analyst at Counterpoint Research, pointed out: "Considering current component costs, producing a $30 to $40 smartphone will not be easy." He added: "Products in this price range will inevitably have very basic specifications and a low-margin structure."

Rising memory prices and component supply issues are also cited as obstacles. According to Counterpoint, the average selling price of smartphones in the Middle East and Africa region in the fourth quarter of 2025 was about $188, or about 280,000 won, a wide gap from the $40 target.

There have been attempts to launch low-cost smartphones in the past. Google's Android One programme, launched in 2014, was a low-cost smartphone project targeting markets in India, Southeast Asia and Africa, but it failed to secure as much market share as expected and effectively ended.

GSMA stressed that tax cuts and policy support from governments are essential for the project to succeed. South Africa last year abolished a 9 percent luxury tax that had applied to smartphones priced at $150 or less.

GSMA said lowering barriers to smartphone access through cooperation among carriers, manufacturers and governments is a key task for narrowing the digital divide and expanding internet adoption, and urged policy support from each country.