(Ecofin Agency) - • MTN to distribute 1.2 million 4G smartphones at $5.42 for prepaid users.
• Move supports South Africa’s plan to phase out 2G and 3G by 2027.
• Critics question the program’s fairness and device quality.

MTN South Africa will offer 1.2 million smartphones for just 99 rand (about $5.42) to its prepaid users. Announced on May 5, the initiative aims to speed up the use of 4G as the country prepares to shut down 2G and 3G networks in favor of faster technologies.

The high cost of 4G phones is one of the main reasons many South Africans have not yet switched. While prices have dropped thanks to low-cost brands like Tecno, Itel, and Infinix, many people still cannot afford even basic smartphones. GSMA, the global mobile industry group, notes that these lower prices remain out of reach for millions.

MTN will roll out the program in three phases. First, 5,000 carefully selected users in Gauteng will receive phones based on their spending habits, data use, and how long they have been MTN customers. Then, over 130,000 users across the country will be included, followed by more than 1.1 million others.

South Africa plans to phase out older mobile networks by 2027. MTN wants to move faster, with its 3G network set to shut down by December 31, 2025. The shift to 4G and 5G offers better internet speed and reliability, and also supports services like video streaming, online gaming, and cloud storage. These services use more data, which could raise MTN’s revenue. GSMA expects monthly data use in Sub-Saharan Africa to grow from 1.9 GB in 2023 to 8 GB by 2030.

Still, the program has drawn criticism. With nearly 30 million prepaid users, only a small share will benefit. Some say the selection process favors users who already have the means to buy a phone, while those who need the help most may be left out. Others worry the phones may not be good enough to meet modern needs. And even with a new phone, data costs and lack of digital skills may still hold users back.