MTN Group has said rising smartphone prices will not derail its investment plans across Africa, despite growing concerns that the increasing cost of internet-enabled devices could slow efforts to expand digital access.
The Group President and Chief Executive Officer, Ralph Mupita, disclosed this during an engagement with journalists and fellows of the MTN Media Innovation Programme in Lagos, where he identified device affordability as one of the biggest challenges facing the telecommunications industry.
Mupita said the cost of devices had risen sharply, partly because of increasing demand for memory components from companies developing artificial intelligence infrastructure.
According to him, the cost of devices has increased by at least 80 per cent, making it increasingly difficult for millions of Africans to afford smartphones and benefit fully from expanding telecommunications networks.
He explained that MTN had previously expected to distribute internet-enabled devices for about $50, but the same category of devices now costs between $80 and $100.
The development comes amid reports of a slowdown in global smartphone shipments, with rising component costs pushing manufacturers to increase prices. Figures cited from market research firms IDC and Counterpoint indicated that smartphone shipments declined by 22 per cent year-on-year in the third quarter of 2026, while prices of existing models rose by nearly 15 per cent globally.
New smartphone launches have also become more expensive, with some models reportedly costing about 25 per cent more than their predecessors.
Mupita, however, maintained that the rising cost of devices would not force the company to slow its investment in network expansion and digital infrastructure.
He said MTN would continue to invest in connectivity, fintech and other digital services as part of its long-term strategy to expand access and support the continent’s growing digital economy.
The telecoms executive also identified fibre-to-the-home connectivity as a major investment opportunity for the company over the next five to 10 years, particularly as demand for reliable, high-speed internet continues to grow.
He said connecting homes would become increasingly important as more people rely on digital services for work, education, entertainment and other everyday activities.
MTN’s home broadband strategy combines fibre-to-the-home deployments with fixed wireless access through its 4G and 5G networks, allowing the company to extend broadband services while managing infrastructure costs.
Mupita’s comments come as the company seeks to balance the need for greater network capacity with the affordability challenges facing consumers.
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He said average data consumption spending among Nigerian customers was increasing by about 30 per cent annually, placing additional pressure on operators to expand capacity and improve network infrastructure.
The growing demand, he explained, requires continued investment in fibre infrastructure and network upgrades to ensure that customers can access reliable services without overwhelming existing systems.
MTN Nigeria’s Chief Financial Officer, Modupe Kadri, said the company continued to channel a significant proportion of its earnings back into the Nigerian economy through capital investment and dividends.
Kadri disclosed that about 76 per cent of the company’s revenue flows back into the economy, adding that MTN Nigeria spent ₦620.5bn on capital expenditure in 2025.
She said the company’s total capital expenditure had reached ₦1.6tn over the preceding 18 months.
MTN’s investment drive comes against the backdrop of persistent digital access challenges in Nigeria, where the cost of internet-enabled devices remains a major obstacle for low-income households.
A September 2026 report by the GSMA indicated that only about three in 10 Nigerians actively use the internet, while the country’s internet usage gap stood at 53 per cent and its coverage gap at 11 per cent as of 2025.
The report estimated that halving these gaps could bring an additional 75 million Nigerians online.
Mupita said addressing the affordability challenge would require collaboration among telecommunications operators, device manufacturers, financial institutions and governments.
He identified device financing arrangements and partnerships with manufacturers as possible ways to reduce the burden on consumers, while urging governments to consider measures such as lowering import duties and other charges that increase the cost of smartphones.
He also noted that operators must continue to invest in network infrastructure while ensuring that communication services remain affordable to customers.
MTN, which serves more than 307 million customers across its markets, is pursuing its Ambition 2030 strategy, which focuses on expanding connectivity, strengthening fintech services and investing in digital infrastructure across Africa and the Middle East.
Mupita said the company’s long-term investment plans would remain focused on meeting growing demand for digital services, even as rising device costs present a challenge to efforts to connect more people.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
