JOHANNESBURG (Reuters) -MTN South Africa said it will offer 1.2 million of its prepaid customers 4G smartphones for as little as 99 rand ($5.42) to support digital adoption for low-income households, as the country gears up to switch off 2G and 3G technologies.
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.
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 740 rand.
For the other brands, they range between 800 rand and 1,100 rand per device.
MTN South Africa will incur operational costs of between 150 rand and 190 rand per device through courier costs, call centre, marketing and incentives, it said.
($1 = 18.2765 rand)
(Reporting by Nqobile Dludla; Editing by Sharon Singleton)
