MTN Slashes Smartphone Prices in South Africa—4G Adoption About to Skyrocket

Africa’s telecom giant drops budget-friendly devices—because nothing drives ’digital inclusion’ like squeezing ARPU from low-income users.

Subheader: The 4G Land Grab

MTN’s latest play: Flood the market with cheap handsets to lock in subscribers before rivals wake up. Clever—or desperate? Their network’s already built. Now they just need warm bodies to monetize it.

Closing jab: Wall Street analysts nod approvingly between sips of $8 artisanal coffee—’customer empowerment’ always tastes better with 40% margins.

MTN stated that the program will be implemented in three phases. The programs targeting low-income households will begin in May and conclude at the end of 2026. In the first phase, four G-enabled smartphones will be given to 5,000 customers in the Gauteng province based on their spending patterns, usage patterns, and loyalty.

The offer will extend to more than 130,000 consumers nationwide in the second phase, and the final phase will focus on more than 1 million users across South Africa.

This action is ahead of South Africa’s planned shutdown of all 2G and 3G services on December 31, 2027.

The government seeks to reallocate radio spectrum to enable faster 4G and 5G technologies.

MTN stated that it would provide a variety of devices throughout the program, with 39.8 million customers nationwide, 29.9 million of whom are prepaid.

The company will initially distribute the itel 5-inch smartphone, which typically costs 740 rand at retail. Models in later stages will range in price from 800 to 1,100 rands.

The company will absorb operating costs of 150–190 rand per device to cover marketing, customer service, and logistics