Vodacom R249 4G phone unveiled

Vodacom has introduced the Mobicel S4 cloud-based 4G phone, which it says will provide low-income earners with a “smartphone lite” experience and 4G connectivity.

The handset, priced at R249, can access applications like YouTube, TikTok, and Facebook via the cloud. It packs 48MB of RAM and 128MB of storage, a 2.8-inch display, and a 1,000mAh battery.

“Vodacom South Africa, part of Vodacom Group, has introduced a cloud-based phone, to reduce the cost of smartphone access in the country and to accelerate the migration of customers from legacy networks to modern 4G networks,” Vodacom said in a statement.

It cited research conducted by the Broadband Commission for Sustainable Development in 2022, supported by Vodacom parent Vodafone, which found that lowering prices is critical to increasing access to smartphones.

The report estimated that even a smartphone priced at around R1,100 could cost up to 63% of the average monthly income across Africa.

“The Broadband Commission’s report recommended that so-called thin-client phones — like the new cloud-based phone which Vodacom has delivered — should be explored,” said Vodacom.

“The new cloud-based phone leverages the power of cloud computing to deliver a range of features typically associated with entry smartphones at a more affordable cost.”

Vodacom South Africa’s managing executive for terminals, Davide Tacchnio, says the digital divide remains a challenge in the country, particularly among residents who rely on 2G and 3G networks.

South Africa is hoping to switch off its 2G and 3G networks in the coming years to free up network capacity for newer technologies, and a key aspect of the programme is providing access to affordable 4G devices.

“At Vodacom, we remain committed to bridging the digital divide by providing affordable devices — which explains why we have introduced this cloud-based model to offer lite smartphone benefits to those who traditionally cannot afford them,” said Tacchino.

“The cloud phone will also help customers still anchored to 2G phones and not familiar with the touch screen experience, allowing them to appreciate a smooth transition to the data and application world.”

South Africa’s plan to shut down its legacy networks has been in the spotlight for several years, and despite extensive delays and missed deadlines, the DCDT has proposed a final deadline of 31 December 2027.

However, mobile operators and other stakeholders warned that the high barrier to entry for 4G and 5G devices will leave many South Africans behind.

Association of Communications and Technology CEO Nomvuyiso Batyi has called for the DCDT to scrap the deadline.

“In making sure that no one is left behind, let us not have a set deadline and cause unnecessary panic. Let us make sure South Africans have affordable devices in terms of 4G,” she said.

“There must be a massive public awareness campaign instead of just having a date.”

Vodacom previously told MyBroadband that it estimated that several million 2G and 3G devices, as well as many machine-to-machine and Internet of Things devices, are still active on South African networks.

Communications minister Solly Malatsi has said that he wants to see a threshold on the luxury goods tax charged on smartphones to help make it more affordable for people to switch to 4G and 5G devices.

“One of my obsessions is looking at the declassification of smart devices as luxury items because they carry an additional tax,” Malatsi told MyBroadband during a recent interview.

The South African Revenue Service charges an additional ad valorem tax on smartphones, substantially increasing the price of devices relative to many overseas markets.

“We’ve already had informal discussions with the Treasury about it,” Malatsi said.

“We are not saying remove all the associated luxury goods taxes on smart devices, but have a threshold.”

A threshold would make devices over a set amount considered luxury items, attracting ad valorem, while cheaper devices would be exempt from the tax.