MTN on Wednesday launched the first ever smart feature phone in the country in a bid to drive down cost of mobile devices and in turn increase mobile penetration in all its countries of operation, especially Nigeria which is the biggest market for the telecommunications company.
Despite facing difficult times in Nigeria in the past few years, MTN has succeeded in developing well-rounded telecommunication operations, serving over 66 million subscribers in Nigeria by providing a range of consumer and business digital services including voice and data connectivity and most recently adding device manufacturing to its robust portfolio.
Speaking during the launch of the third-generation (3G) mobile device at the MTN head office in Lagos on Wednesday 6 March, 2019, Rahul De, chief marketing officer, MTN Nigeria, said that it had become important for the company to do something about driving down the cost of smartphones in the continent so as to deepen penetration and create an opportunity for connectivity in the rural areas.
“Availability of affordable devices for data connectivity is very critical to us at MTN. We know that once a country is connected, the GDP growth will be faster and exponential. So we decided not to depend on Original Equipment Manufacturers (OEMs), but to make available, affordable 3G smart feature handsets in the Nigerian, and consequently the African market,” De said.
The MTN device which comes pre-installed with significantly compressed popular mobile applications such as Whatsapp, Facebook, Youtube, Google maps and others, runs of Kai Operating System (KaiOS).
With a 2.4 inches screen size, 2000 mAh battery that can last up to two days without being charged and dual SIM capability, front and rear cameras, its own operating system with downloadable apps, allows simple email formats and retailing at only N8,000, the new smart feature phone is as affordable as a feature phone and as multifunctional as a smartphone.
“Going forward, MTN will probably produce 4G AND 5G devices to suit market demands. We are testing the waters right now and making sure that when we go mass, the quality doesn’t suffer. We have taken all necessary permission from the regulator to bring in these devices through the proper channels. Once the volumes pick up, there is a probability that one day we may start producing these devices in Nigeria,” Rahul De told BusinessDay.
Industry watchers say MTN’s move is strategic, as it already dominates in Nigeria, owning 38.4 percent of the telecommunications market. The company also dominates in Africa with over 232 million MTN subscribers. However, only 72 million of its subscribers are internet data users.
Also, feature phones with limited internet access still dominate in Africa largely due to price. Analysts say that with its own smartphone, MTN could easily achieve a monopoly.
“MTN is a well-rounded company that continues to strive regardless of Nigeria’s unfriendly business terrain. The launch of these affordable devices in a market like this will probably see its earnings shoot up and subscribers grow even more,” Subomi Sodipo, CEO, CF mobile told BusinessDay.
“MTN has also made sure that these devices when bought will have free 500mb data for six months because it is important for our subscribers to be connected,” Abiodun Ajayi, general manager for data and services, MTN Nigeria said.
MTN’s phone hardware is created by China Mobile, with a faster 3G smart chipset created by Chinese technology company Unisoc.
Jumoke Akiyode-Lawanson
