MTN has launched a major initiative to provide 1.2 million of its prepaid customers in South Africa with 4G smartphones at the significantly reduced price of just 99 rand (approximately $5.42).
This move is aimed at promoting digital inclusion and supporting low-income households as the country prepares to phase out 2G and 3G technologies by December 31, 2027. The transition to faster 4G LTE and 5G networks is part of South Africa’s broader digital transformation strategy.
However, the plan has faced criticism over concerns that it could deepen the digital divide, particularly affecting low-income consumers in remote areas who may not be able to afford smartphones compatible with newer technologies, Reuters news report said. MTN’s initiative seeks to address these concerns by ensuring that vulnerable groups are not left behind during the network transition.
The project will unfold in three phases over the next two years. In the first phase, starting this month, 5,000 customers will receive smartphones. These individuals have been carefully selected based on their usage profiles, spending behavior, and how long they’ve been with the network. This initial rollout will focus on customers in Gauteng province.
The smartphone being offered in this phase is the Itel 5.5-inch device, which usually sells for 740 rand. In the second phase, over 130,000 customers across South Africa will be included, followed by a third and final phase that will reach more than 1.1 million additional prepaid users.
MTN, which serves 39.8 million customers in South Africa — 29.9 million of whom are on prepaid plans — will offer a variety of smartphones throughout the rollout, with devices ranging in retail price from 800 rand to 1,100 rand.
The company will absorb operational costs of between 150 rand and 190 rand per device. These costs will cover courier services, call center support, marketing, and customer incentives.
CEO Charles Molapisi stated that MTN is committed to ensuring no one is excluded from the digital age and emphasized the importance of connecting as many South Africans as possible as the country adopts newer technologies.
The initiative positions MTN as a leader in driving digital equity and supporting the government’s broader technological goals, while also helping the company maintain customer loyalty and network relevance in a rapidly evolving market.
TelecomLead.com News Desk
