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For two decades, MTN’s approach to selling handsets has been driven not about how much it can charge, but how little.
In telecommunications, US$13 doesn’t get you very much hardware but that’s how much MTN Uganda was able to charge for a basic entry-level phone back in 2008 – the cheapest on the continent at the time. Three years later the same price tag was attached to a basic cellphone in Zambia.
The drive to provide affordable handsets to as many people as possible has been relentless. In 2014, across the Group, 1.9 million cellphones and tablets costing between US$15 and US$50 were distributed, a 58% increase on the previous year.
That same year, we reported that in South Africa demand for our US$45 MTN Steppa smartphone had far exceeded demand. Building on this success, the MTN Steppa 2 smartphone and an US$85 MTN Steppa tablet were launched. In Guinea-Conakry, a US$15 ITEL 2060 smartphone bundled with two MTN SIM cards and preloaded with airtime was well received by our customers.
Four years later and, with considerable fanfare, we announced the development of a 3G smart feature phone through a partnership with China Mobile, UNISOC and KaiOS technology. Priced at just US$20, the MTN Smart 3G feature phone offered several smartphone-like functionalities at an incredibly accessible price point.
“Combined with our coverage plan for rural areas, enabling people to use data services on affordable connected devices such as the MTN Smart 3G feature phone . . . can open a world of opportunities for people to transform their daily lives,” we said at the time.
We also disclosed then that MTN aimed to ensure that 10 million more people could use MTN’s smart feature phones to connect to the internet in the next three years.
Fast forward to 2024 and one operation, MTN Cameroon, is at pains to ensure that customers and potential customers receive all the possible enablers they need to be connected – whether it is for voice or data.
The most fundamental enabler is the handset, but affordability remains a major concern for most. As Segolene Nzega, MTN Cameroon’s Device Manager, puts it, MTN Cameroon “has engaged with this particular battle for many years already”.
A major challenge in Cameroon is the open market in cellphones where cheap, “grey” imported phones proliferate, many of them fakes or of inferior quality. Grey cellphone sales typically evade taxes, creating an uneven playing field for legitimate businesses.
To compete with this large, unregulated market, MTN leverages the Group’s buying power to secure the lowest possible device prices from original equipment manufacturers (OEMs). The company also subsidises handsets, often by as much as 50% of the cost, and bundles them with attractive data packages. This, Segolene says, adds up to a compelling value proposition, further enhanced by warranties on all MTN-supplied phones.
In 2019, MTN Cameroon introduced the US$20 MTN Smart 3G feature phone. These phones (smart-feature phones) bridged the gap between feature phones and smartphones and proved to be immensely popular. However, according to Segolene, users are now naturally migrating towards full-feature smartphones as they get a taste for the full power of the (particularly 4G-enabled) devices in their hands.
To address this demand, MTN Cameroon has not only relied on handset subsidies. Since December 2022 the company has provided device financing options, allowing customers to pay for smartphones over periods of three, six or 12 months. This initiative, unique among Cameroonian operators, enables customers to acquire the phones of their dreams without the financial strain of a large upfront cost.
MTN's commitment to device affordability goes beyond simply increasing subscriber numbers. It's about empowering individuals and communities with the tools they need to thrive in the digital age. By making smartphones more accessible, we are helping to bridge the digital divide and unlock a world of opportunity – for education, economic growth and social inclusion. This dedication to affordability reflects our belief in the transformative power of connectivity, fostering a more inclusive digital future for communities across Africa and ensuring that everyone, everywhere, has the opportunity to benefit from mobile technology and participate fully in the digital age.
