MTN to Offer Budget 4G Smartphones for R99 as South Africa Phases Out 2G and 3G

In a major push to close the digital gap, MTN South Africa has announced a new initiative to offer 4G smartphones for just R99 to over a million prepaid customers. This move is part of the telecom giant’s plan to support digital adoption among low-income households as the country prepares to switch off its ageing 2G and 3G networks.

The phased programme, which launches this month and runs until the end of 2026, will ultimately reach 1.2 million South Africans. In the first stage, MTN will deliver 4G-enabled Itel smartphones—usually priced at R740—to 5,000 selected customers in Gauteng. Selection is based on usage habits, spending behaviour, and customer loyalty.

Next, the second phase will expand the offering to more than 130,000 customers across South Africa. The final stage will roll out over 1.1 million devices to users nationwide, significantly boosting access to 4G connectivity.

The timing is critical. South Africa plans to completely phase out 2G and 3G networks by 31 December 2027, freeing up spectrum for faster 4G LTE and 5G technologies. But concerns have been raised that the transition could leave millions of low-income and rural users behind—people who still rely on basic phones not compatible with newer networks.

MTN CEO Charles Molapisi emphasized that the company is acting to prevent such exclusion:

“At MTN, we are committed to going the extra mile to ensure that no one is left behind in the digital era. As the country transitions to technologies like 4G and 5G, it is vital that we take proactive steps to connect as many South Africans as possible.”

Currently, MTN serves 39.8 million mobile customers in South Africa, with 29.9 million on prepaid plans. The company will offer a range of budget-friendly smartphones throughout the initiative, typically priced between R800 and R1,100.

The operational costs to MTN—including courier fees, call centre support, marketing, and customer incentives—are expected to range between R150 and R190 per device.

This initiative is not just about devices—it’s a strategic effort to secure MTN’s customer base, keep South Africans connected, and ensure that digital transformation doesn’t leave anyone behind.

{Source: Reuters}

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