MTN selling smartphones for R99

MTN South Africa is distributing 5,000 Itel smartphones to select customers for a one-off fee of R99, incurring an operational cost of between R150 and R190 per unit.

The mobile operator announced the initiative in early May 2025 and has now revealed device specifications for the R99 smartphones it will offer customers to MyBroadband.

“For phase one (5,000 devices), MTN SA is distributing Itel 5.5-inch devices. The next batch (phases 2 and 3) will see MTN SA distributing various devices, including Itel,” it said.

“These are zero cost to MTN and the customer, bar R99 once-off. MTN SA is incurring operational costs of between R150 and R190 per device through courier costs, call centre, marketing, and incentives.”

The mobile operator noted that the first phase has already kicked off, focused on Gauteng, and phase two is set to begin next month across South Africa.

In phase two, MTN plans to offer 130,000 prepaid customers 4G smartphones of various makes and brands, followed by another 1.1 million customers in the project’s third phase.

The Itel smartphone being distributed in the project’s first phase is the AC51, which runs Android 14 Go, features 4G connectivity, and packs a 2,050mAh battery.

The Itel AC51 has a 5-inch 854 x 480-pixel display, packs 32GB of internal storage, and offers dual SIM support.

The smartphone comes with 2GB of RAM, but 2GB of its internal storage can be used as virtual RAM for better performance.

Regarding photographic capabilities, the Itel AC51 has a 5MP rear camera and a 2MP selfie camera.

MTN’s ultimate goal with the initiative is to offer more than 1.2 million of its prepaid customers affordable 4G smartphones, with prices starting from R99.

The campaign forms part of the mobile operator’s efforts to extend digital inclusion and ensure people aren’t left behind when the government switches off South Africa’s 2G and 3G networks.

“The initiative aligns with MTN’s work to provide affordable and accessible mobile services to all South Africans,” MTN said.

“By giving customers access to 4G smartphones, MTN is empowering them to fully engage in the digital economy, with a focus on education, work, healthcare and communication.”

2G and 3G switch-off headache

South Africa’s plans to switch off its 2G and 3G networks have been in the public eye for several years and have missed several deadlines.

The Department of Communications and Digital Technologies has proposed a final deadline of 31 December 2027.

However, the Independent Communications Authority of South Africa (Icasa) must first conduct an economic impact assessment to minimise the switch-off’s impact on current users.

The assessment involves collecting input from private sector players and identifying which parts of the country still lack 4G and 5G network coverage.

If the switch-off were to occur before coverage was expanded to these areas, residents living in these areas would be left behind.

In response to parliamentary questions submitted in January 2025, Communications Minister Solly Malatsi noted that many parts of the country still lack 4G and 5G coverage.

However, he is committed to ensuring that all residents realise the benefits of 4G and 5G.

Icasa’s assessment recommendations will likely include each mobile operator’s input on its shutdown plans and timelines.

This will ensure coordinated and minimal disruption to existing services.

The delays in switching off South Africa’s 2G and 3G networks stem from the high barrier to entry for 4G and 5G devices, which make them unaffordable for some South Africans.

Mobile operators like Vodacom and MTN have made efforts to tackle this problem by launching affordable 4G and 5G devices, and have said they prefer an industry-led approach rather than an arbitrary deadline.