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MTN targets informal markets with low-cost phone

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MTN is expanding its reach in the South African market, offering low-cost cellphones to the mass and emerging markets. 

The sale of handsets in this market is a new development as MTN has traditionally only sold cellphones via its retail and dealer channels.
The concept was piloted in December and enjoyed an overwhelming response. To this end, MTN has decided to increase the choice of cellphones on offer by introducing a variety of cellphone brands. This addition will empower those who were previously excluded from the cellular market due to affordability and physical access.
Consumers will now no longer need to travel vast distances to purchase a MTN cellphone or any other MTN product as it will now be easily accessible through MTN’s 186 distribution partners across South Africa, with the primary focus on rural, township and peri-urban areas.
In addition to empowering consumers with affordable access to communication tools, MTN has introduced the low-cost cellphones to lower the barrier to entry to consumers, making communication affordable and accessible to them. This accessibility is an opportunity for MTN to facilitate the socio-economic upliftment of South Africans in general and to provide them with tools for entrepreneurship and business development
The intention is to offer consumers in the mass and emerging markets a diverse product offering over and above the traditional MTN airtime and starterpack products available.
Consumers who previously aspired to owning a cellphone or those that wanted a more aspirational cellphone will now be able to purchase cellphones which will range from R200.00 to R600.00 each and will be available in their own environments.