Nigerian telecom comapany Airtel wants to make 5G phones cheaper for millions of users who can’t afford them yet. The company announced it’s working directly with device manufacturers to cut costs and boost 5G adoption across the country.
CEO Dinesh Balsingh shared the strategy during a media briefing on Tuesday, August 5. He explained that expanding 5G networks means nothing if people can’t buy compatible phones.
“5G is not only about telecom infrastructure. It’s an ecosystem where devices and networks must come together,” Balsingh said. “Rolling out the network is important, but it’s just as crucial to ensure that consumers have access to 5G-enabled phones.”
Airtel Tackles Nigeria’s Phone Affordability Crisis
Nigeria faces a serious smartphone affordability problem. Entry-level smartphones now cost ₦200,000-₦220,000, up from ₦120,000-₦180,000 earlier this year, according to recent market data. This price surge puts basic smartphones out of reach for many Nigerians.
The situation gets worse with 5G phones. Most 5G-enabled devices cost significantly more than regular 4G smartphones, creating another barrier for users who want faster internet speeds.
Airtel’s partnership strategy promises to tackle this head-on. Balsingh revealed the company is actively talking to device manufacturers about reducing unit costs through component re-engineering and strategic partnerships.
Device Penetration Lags Behind Network Expansion
While Airtel claims 100% 4G coverage except in remote areas, device adoption tells a different story. GSMA data shows only 60% of Nigerians with 4G coverage actually use mobile internet services.
5G adoption faces even steeper challenges. Nigeria’s 5G penetration sits below 3% after three years of commercial rollout. Less than 1% of smartphones in Nigeria support 5G technology, according to Airtel’s own estimates from 2023.
Angela Wamola, Head of Sub-Saharan Africa at GSMA, recently identified device affordability as the biggest barrier to deeper 4G adoption in Nigeria. This same challenge now threatens 5G expansion plans across the telecom industry.
How Airtel Plans to Cut 5G Phone Costs
Balsingh outlined several approaches the company will pursue with device manufacturers:
- Component re-engineering: Working with makers to redesign phone parts and reduce manufacturing costs without compromising quality.
- Strategic partnerships: Creating deals with original equipment manufacturers (OEMs) that could lead to bulk pricing or co-branded devices.
- Incentive programs: Developing standard operating procedures that support price reductions or bundling models.
The company has already partnered with several major brands. Airtel customers can now buy devices like the Samsung A14 5G, Infinix Hot 30 5G, Tecno Camon 201, and Tecno Spark 101 through various financing arrangements.
Nigeria’s 5G Infrastructure Race Continues
Despite device challenges, Airtel plans rapid 5G infrastructure expansion over the next few months. The company announced it will double its capital expenditure in 2025 to accelerate 5G deployment and extend coverage to rural areas.
This investment comes as part of a broader $120 million commitment that includes building a 38MW data center in Lagos. The facility will support growing data demands as more users eventually migrate to 5G services.
MTN Nigeria, Airtel’s main competitor, has also launched device financing programs to boost 5G adoption. The company offers installment payment options that allow customers to buy 4G and 5G smartphones over extended periods.
Industry Experts Question Timeline
While industry observers welcome Airtel’s device partnership strategy, some question how quickly it can deliver results. The company has not provided a clear timeline for when cheaper 5G phones might reach the market.
Previous attempts to reduce smartphone costs in Nigeria have shown mixed results. Local assembly programs and import duty reductions have had limited impact on final consumer prices due to currency volatility and supply chain challenges.
The success of Airtel’s approach will likely depend on how effectively it can coordinate with multiple manufacturers while maintaining device quality standards.
