South Africa's MTN launches affordable 5G smartphone

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JOHANNESBURG (Reuters) - MTN South Africa on Tuesday launched MTN Icon 5G, a 5G-enabled smartphone it plans to sell for 2,499 rand ($138) as part of its commitment to make mobile internet more accessible and switch customers from older 2G and 3G technologies.

While growth in mobile internet penetration has reduced the digital divide among South Africans, a significant gap remains, according to the GSMA industry body, with the main reason being affordability.

MTN Icon 5G provides an affordable entry point for customers seeking to benefit from 5G's faster data speeds, lower latency, and enhanced user experiences, MTN said in a statement.

The smartphone, which is also available from 219 rand per month on a 36-month contract, is manufactured by Chinese handset maker ZTE Corp., MTN said in an emailed response to questions.

MTN, South Africa's second biggest mobile operator, also introduced the phone as a way to accelerate migrating customers from legacy 2G and 3G networks to modern 4G and 5G networks as South Africa starts phasing out the older technologies.

"This is another significant step in our mission to ensure that all South Africans have access to fast, reliable, and affordable mobile communication, regardless of their economic background," said Thando Gabela, General Manager for Devices at MTN South Africa.

($1 = 18.1332 rand)

(Reporting by Nqobile Dludla; Editing by Mark Potter)