Truth about MTN’s R99 smartphones

South African mobile network operator MTN has revealed that customers buying the Itel AC51 smartphone for R99 are paying R650 less than the device’s suggested retail price.

MTN announced the initiative to roll out R99 smartphones to specific customers in early May 2025, as it looks to expand access to 4G and 5G smartphones before switching off its older networks.

In its presentation before the Portfolio Committee on Communications and Digital Technologies, MTN revealed that the smartphone’s retail price is R749. However, the cost price is likely much less than that.

The device in question, the Itel AC51, offers features like 4G connectivity, a 5-inch 854 x 480-pixel display, 32GB of storage, and dual SIM support.

The Itel AC51 runs Android 14 Go and packs a 2,050mAh battery and 2GB of RAM, which can be increased to 4GB by using a portion of its internal storage as virtual RAM for better performance.

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

MTN is distributing affordable smartphones in three phases through this initiative, and the first phase launched in May 2025.

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

“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 initiative’s first phase is focused on customers in Gauteng, and the second phase is set to commence in June 2025.

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.

Its ultimate goal is to offer more than 1.2 million prepaid customers affordable 4G smartphones, with pricing starting from R99.

Future-proofing customers

The initiative is part of MTN’s efforts to expand digital inclusion and ensure its customers aren’t left behind when South Africa’s 2G and 3G networks get switched off.

“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.”

Qualifying customers are selected based on usage profiles, spending patterns, and tenure, and MTN said they will be primarily in Gauteng.

The devices it distributes are preloaded with various prominent applications to ensure customers can access a wide range of digital tools and services.

They will be restricted to MTN’s network, which the mobile operator noted is a common requirement for low-cost devices subsidised by mobile networks.

MTN South Africa CEO Charles Molapisi said the operator must take proactive steps to connect as many residents as possible. It’s running the initiative in partnership with Smartphone For All Pty Limited.

Smartphone For All founder and CEO Babatunde Osho said the initiative marked a pivotal step in bridging the digital divide.

“By making smartphones more accessible and affordable, we are unlocking opportunities for millions who have been left behind in the digital economy,” Osho stated.