Leading telecom operators MTN Group and Airtel Africa have entered into a network infrastructure-sharing agreement in Nigeria and Uganda to reduce operational costs and enhance mobile connectivity, particularly in underserved regions.
Scope of the Agreement
Under the partnership, both companies will explore various models of network collaboration, including Radio Access Network (RAN) sharing and fibre infrastructure partnerships. This initiative may also involve the construction of new fibre networks where required, ensuring broader coverage.
The telecom giants announced the deal on Wednesday, emphasizing its role in optimizing operational expenses and improving service delivery. Given the challenges of expanding digital services to rural areas, the collaboration is expected to boost efficiency and bridge connectivity gaps.
Addressing Economic Challenges
MTN and Airtel, which collectively dominate over 85% of Nigeria’s telecom market, have faced significant foreign exchange (FX) losses due to the depreciation of the naira. To manage this, both companies have scaled back network infrastructure investments in recent months to mitigate rising costs, including energy expenses.
Industry Leaders Weigh In
MTN Group President and CEO Ralph Mupita highlighted the increasing demand for data services across Africa, stressing the importance of strategic investments.
“At MTN, we are committed to delivering digital solutions that propel Africa’s progress. The demand for digital and financial services continues to rise, and we must invest in coverage and capacity while leveraging opportunities for network sharing to improve efficiencies,” he stated.
Airtel Africa CEO Sunil Taldar echoed similar sentiments, describing the partnership as a cost-effective way to expand digital infrastructure.
“As we compete on brand strength, services, and offerings, we are also focused on building shared infrastructure within the regulatory framework. This approach ensures a more extensive digital highway, enhances financial inclusion, and eliminates the duplication of costly infrastructure,” he said.
Future Expansion Plans
Beyond Nigeria and Uganda, MTN and Airtel are considering similar infrastructure-sharing agreements in other African markets, including Congo-Brazzaville, Rwanda, and Zambia. If successful, this initiative could redefine network expansion strategies across the continent, fostering wider internet access and improved telecom services.
This strategic move signals a shift towards greater collaboration in Africa’s telecom sector, where operators are increasingly seeking cost-saving and efficiency-driven solutions to navigate economic challenges while expanding connectivity.
