MTN South Africa aims to boost 4G adoption with budget smartphones

File photo: A person walks past a MTN logo outside the company's headquarters in Johannesburg, South Africa, on 17 November 2023. Reuters/Siphiwe Sibeko/File photo

The initiative will be executed in three phases, starting this month until the end of 2026. In phase one, 5,000 "carefully selected" customers, based on usage profiles, spending patterns, and tenure, will be offered 4G smartphones, mainly in Gauteng province, MTN said in a statement on Monday.

In phase two, more than 130,000 customers nationally will be offered the devices and then in the third phase, more than 1.1 million MTN customers across the country will benefit.

The initiative comes as South Africa plans a total shutdown of 2G and 3G networks by December 31, 2027, to free up radio waves for faster 4G LTE and 5G networks.

Critics of the plan had argued that phasing 2G and 3G networks risked exacerbating the digital divide as many low-income consumers, particularly those in remote areas, may not be able to afford smartphones designed for faster networks.

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This in turn would mean a drop in customer numbers for mobile operators and lower revenue.

"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," said MTN South Africa CEO Charles Molapisi.

MTN, with 39.8 million customers in South Africa, of which 29.9 million are prepaid, said it will be offering a variety of smartphones throughout the initiative. For the first phase, it will distribute the Itel 5.5-inch smartphone, which usually retails for R740.

For the other brands, they range between R800 rand and R1,100 per device.

MTN South Africa will incur operational costs of between R150 and R190 per device through courier costs, call centre, marketing and incentives, it said.