Alex Omenye

MTN South Africa has announced a major initiative to distribute 4G smartphones to 1.2 million of its prepaid customers at heavily subsidized prices, as the country prepares to phase out 2G and 3G networks by the end of 2027.

The telecoms giant said on Monday it will sell smartphones for as little as 99 rand (approximately \$5.42) to help low-income households transition to faster mobile technologies. The programme, aimed at promoting digital inclusion, will roll out in three phases between now and the end of 2026.

In the first phase, 5,000 carefully selected customers—based on usage patterns, spending habits, and how long they’ve been with MTN—will receive the discounted phones, with initial distribution focusing on Gauteng province. Phase two will see more than 130,000 customers across the country benefit, while the final phase will reach over 1.1 million users nationwide.

“With the switch-off of 2G and 3G networks planned for December 31, 2027, we are taking bold steps to ensure that no one is left behind in the digital era,” said Charles Molapisi, CEO of MTN South Africa. “As we move towards 4G and 5G, connecting more South Africans is essential.”

MTN, which has 39.8 million subscribers in South Africa—29.9 million of them prepaid—said it will initially distribute the Itel 5.5-inch smartphone, which normally retails for 740 rand. Other models priced between 800 rand and 1,100 rand will be introduced as the programme expands.

The company expects to incur operational costs ranging from 150 rand to 190 rand per device, covering expenses such as logistics, call centre support, marketing, and customer incentives.

The initiative addresses concerns raised by critics who argue that shutting down legacy networks could deepen the digital divide, especially in rural areas where low-income users may not be able to afford 4G-enabled devices.