MTN South Africa has unveiled a large-scale initiative to accelerate digital inclusion, offering more than 1.2 million prepaid customers affordable 4G smartphones as the country phases out 2G and 3G networks. The programme, which began this week, provides devices for as little as 99 rand (around 5.40 USD).
Phased roll-out strategy
The project is structured in three stages. The first phase targets 5,000 customers in Gauteng province, serving as a pilot for demand and logistics. A second phase will expand to 130,000 customers across the country, while the final and most ambitious stage will extend the scheme to over 1.1 million users by 2026. The objective is to ensure customers can continue accessing mobile services as legacy networks are switched off.
Driving digital inclusion
South Africa’s mobile industry faces a major transition as spectrum efficiency demands push operators towards 4G and 5G. For many low-income households, however, the cost of upgrading to newer devices remains prohibitive. MTN’s subsidised pricing is intended to bridge this gap, enabling millions to maintain connectivity, access mobile banking, and participate in the digital economy.
Customer retention and growth
The initiative is also designed to protect and expand MTN’s customer base. As competitors race to migrate users to higher-speed networks, affordability has become a critical battleground. By offering entry-level smartphones at ultra-low prices, MTN aims not only to reduce churn but also to attract first-time mobile internet users. The operator believes that expanded data usage will offset the subsidy costs over time.
Broader market implications
The move comes amid intensifying competition in South Africa’s telecoms sector, where operators face both regulatory pressure and the challenge of closing the digital divide. Analysts note that the initiative could set a benchmark for inclusive business models, balancing commercial goals with social impact. If successful, it may encourage similar efforts across Africa, where millions remain excluded from modern mobile networks.
REFH – Newshub, 28 August 2025
Recent Comments