MTN South Africa announced a new initiative to provide over 1.2 million of its prepaid customers with 4G smartphones priced as low as R99.
The programme aims to make smartphones more accessible to low-income households, especially as the country prepares to phase out 2G and 3G networks by 31 December 2027.
R99 phones from MTN
MTN’s phased rollout will take place over three phases:
Phase 1 starts this month (May 2025) with 5,000 MTN users in Gauteng receiving Itel 5.5″ smartphones. These devices usually retail for R740, now for a subsidised price of R99.
MTN says the selection criteria include spending patterns and tenure.
Phase 2 will see more than 130,000 customers nationwide getting these devices too. This will be followed by Phase 3, when more than 1.1 MTN users will benefit from this programme.
The devices will come preloaded with essential applications and are intended for use exclusively with MTN SIM cards.
How does it work?
MTN partnered with Smartphone For All to facilitate this distribution.[1]
The company anticipates operational costs between R150 and R190 per device, covering logistics, customer support, and marketing expenses.
Meanwhile, MTN SA CEO Charles Molapisi emphasised the company’s commitment to digital inclusion, while MTN Group CEO Ralph Mupita highlighted the importance of device affordability.
South Africa’s digital gap
This initiative aligns with MTN Group’s broader strategy, as detailed in its 2024 Integrated Report, to lead digital solutions for Africa’s progress.
The report highlights MTN’s commitment to expanding digital and financial inclusion across the continent, leveraging its extensive network and services to bridge the digital divide.
By providing affordable access to modern mobile technology, MTN aims to enhance connectivity for low-income and remote populations.
[1] Apart from Business Day reporting that Metrofile Nigeria’s Babatunde Osho founded it, we couldn’t find this company’s website or any other details.
