MTN Group and Airtel Africa have entered into a network infrastructure-sharing agreement in Nigeria and Uganda, aiming to reduce operational costs and expand mobile connectivity, especially in underserved areas.
As part of this collaboration, both companies will explore different models of network sharing, including Radio Access Network (RAN) and fibre infrastructure partnerships.
This may involve constructing new fibre networks where necessary to enhance service delivery.
Announcing the deal on Wednesday, MTN and Airtel emphasised that the initiative would optimise expenses and improve digital access, particularly in rural areas where connectivity remains limited.
Both telecom giants, which control 51.79 percent and 34.11 percent of Nigeria’s telecom market, respectively, have faced financial strain due to foreign exchange losses caused by the depreciation of the naira.
To manage this challenge, both companies have scaled back investments in network infrastructure, adopting a strategy aimed at minimising forex exposure and addressing rising operational costs, including increasing energy expenses.
MTN Group President and Chief Executive Officer Ralph Mupita noted that the demand for data services continues to grow across Africa, necessitating strategic investments in network expansion.
“At MTN, we are driven by the vision of delivering digital solutions that drive Africa’s progress and will continue to see strong structural demand for digital and financial services across our markets.
“To meet this demand, we continue to invest in coverage and capacity to ensure high-quality connectivity for our customers. That said, there are opportunities within regulatory frameworks for sharing resources to drive higher efficiencies and improve returns,” he said in a statement.
Following the agreements in Nigeria and Uganda, MTN and Airtel are now exploring similar network-sharing opportunities in other African markets, including Congo-Brazzaville, Rwanda, and Zambia.
Airtel Africa Chief Executive Officer Sunil Taldar highlighted the partnership as an efficient way to expand digital infrastructure while ensuring cost-effectiveness.
“As we compete fiercely in the market on the strength of our brand, services and offerings, we are building common infrastructure within the permissible regulatory framework.
“This provides a more robust and extensive digital highway to drive digital and financial inclusion while avoiding duplication of expensive infrastructure to drive operational efficiencies and benefits for our customers,” he said.
Airtel Africa currently serves over 156 million customers across 14 countries in sub-Saharan Africa, while MTN Group operates in 19 countries across Africa and the Middle East, with a total customer base of 287 million.
