MTN South Africa to Offer 4G Smartphones for as Little as R99 to Bridge Digital Gap

Strategic Insights -

South Africa's mobile operator MTN is launching an initiative to offer 4G smartphones to its prepaid customers in an effort to bridge the digital divide. The plan involves distributing 4G devices to over 1.2 million customers, with the goal of supporting digital adoption for low-income households as the country prepares to switch off 2G and 3G technologies. This comes as South Africa plans to phase out 2G and 3G networks by December 31, 2027, to make way for faster 4G LTE and 5G networks.

Key Takeaways:

  • MTN South Africa will offer 1.2 million prepaid customers 4G smartphones for as little as R99 ($5.42) to support digital adoption for low-income households.
  • The initiative will be executed in three phases, starting this month and ending by 2026, with a focus on customers in Gauteng province.
  • In phase one, 5 000 carefully selected customers will be offered 4G smartphones, while in phase two, over 130 000 customers will benefit.
  • The initiative aims to address concerns that phasing out 2G and 3G networks may exacerbate the digital divide in low-income communities.
  • MTN will incur operational costs of between R150 and R190 per device through courier costs, call center, marketing, and incentives.

Statistics:

  • 1.2 million prepaid customers will be offered 4G smartphones as part of the initiative.
  • 5 000 customers will be selected for the first phase.
  • Over 130 000 customers will be offered 4G smartphones in phase two.
  • MTN South Africa has 39.8 million customers in South Africa, of which 29.9 million are prepaid.
  • The initiative begins this month and will end by 2026.
  • South Africa aims to phase out 2G and 3G networks by December 31, 2027.

Sources:

  • MTN SA [1]
  • Nicola Mawson