Report puts lack of handset affordability as ‘top obstacle to mobile adoption’

ISLAMABAD: About half of female and male mobile users who are aware of mobile internet, cite handset affordability as the key barrier to mobile internet adoption in Pakistan, the latest Mobile Gender Gap Report revealed.

Globally, the report puts affordability (primarily of handsets) as the top obstacle to mobile adoption, especially for women. This is followed by literacy and digital skills and lack of perceived relevance as other top hurdles.

In low and middle-income countries (LMICs), 900 million women are still not using mobile internet and 440 million do not own a mobile phone, with most of them living in South Asia and Sub-Saharan Africa.

According to the report, South Asia still has the widest gender gap in mobile ownership at 15 percent, with Pakistan, of all surveyed countries, having the widest gap in mobile ownership at 35 percent.

But even with the current gaps, both have made significant improvements to close the gender gaps over the years; for comparison, in 2018, South Asia’s gender gap in mobile ownership was 28 percent while for Pakistan it was at 45 percent.

In mobile internet use too, South Asia has narrowed the gap down to 41 percent (compared to 57 percent in 2018) with Pakistan bringing it down to 38 percent (compared to 63 percent in 2018).

Handset affordability in Pakistan has only gone from bad to worse in recent years owing primarily to a steep dollar rate spike, import bans, and excessive taxes.

“Digital inclusion has been a longstanding national priority, aiming to ensure a smartphone in every hand. However, the current state of local handset assembly, impacted by import curbs and burdened by exorbitant taxes/levies, poses a significant barrier to achieving this goal,” shares Aamir Ibrahim, CEO Jazz.

One alternative could be phone installment plans, but in Pakistan’s market largely operating on a prepaid model, doing this has been a challenge for both lenders and digital operators.

“In a predominantly prepaid market like Pakistan’s, individuals’ creditworthiness or the ability to borrow cannot be assessed or documented through traditional credit rating systems,” shares M Ali Khan, head of device management and partners at Jazz.

As financial liabilities are not linked to the social system, financial obligations, such as loans, cannot be closely integrated into the system. This inevitably results in difficulties for lenders to ensure repayments, he adds.

“To stop affordability from being a key barrier to women’s digital inclusion in Pakistan, we at Jazz have taken several steps,” said Jazz CEO Aamir Ibrahim in an interview with GSMA at the virtual launch event of the Mobile Gender Gap Report 2023.

“We have introduced low-priced 4G-enabled handsets that can run WhatsApp, YouTube, and other web apps efficiently. Plus, we have handset installment plans, both in-house and with lending partners,” he added.

“In a medium- to low-income household, a teenage boy is more likely to have a smartphone than a teenage girl. So, while affordability – still a key roadblock to digital inclusion – should apply to both, it doesn’t,” highlights Aamir.

The report corroborates this fact, putting family disapproval as the second key cause of women’s digital exclusion in Pakistan. “The lack of literacy deprives our women of the opportunity to play a huge contributory role in the economy,” Aamir said.

“To change this mindset, we reach out to households through a rural development program, talking to the families about the benefits of mobile phones and internet for women, while diffusing any misconceptions they may have around it.”

We are aiming to have at least 30 percent female mobile internet users on our network by 2025, Aamir added.

The article, originally published July 9, was updated on July 10 with a correction in the last para.

Copyright Business Recorder, 2023