MTN Group and Airtel Africa have agreed to share mobile phone network infrastructure in Nigeria and Uganda. This partnership is a cost-saving measure for both companies, aiming to improve service coverage for customers.
The telecommunication giants revealed this in a statement on Wednesday, March 26.
This Network Infrastructure Sharing Deal is designed to reduce investment costs while still expanding the reach of mobile services
According to the statement, mobile operators in Africa are experiencing a consistent increase in demand for digital and financial services. However, building and maintaining the necessary networks, especially for fast 5G connections, is expensive.
The companies also suggested they might explore similar opportunities in other markets, including Congo-Brazzaville, Rwanda, and Zambia
The potential collaborations include sharing radio access networks, which represent the largest cost in setting up and running a network; commercial and technical agreements for sharing fibre optic infrastructure; and, if necessary, jointly constructing fibre networks
“This engagement does not preclude the parties from collaborating with other operators in any respective market,” the companies pointed out.
“As MTN, we are driven by the vision of delivering digital solutions that drive Africa’s progress.
“We 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,” MTN Group chief executive officer (CEO) Ralph Mupita said.
He also noted that there were opportunities within the existing regulations to share resources, which would lead to greater efficiency and better returns.
On his part, Airtel Africa CEO Sunil Taldar remarked that the agreement would avoid duplication of expensive infrastructure.
He stressed that sharing infrastructure would allow the operators to extend their network coverage more quickly, especially in rural or less densely populated areas where it might not be economically viable to build separate networks.
Meanwhile, a recent disclosure by MTN Nigeria Communications Plc, a subsidiary of MTN Group, indicates that all has not been well with the company’s operations.
Its year-end financial performance, released recently, revealed that MTN Nigeria posted a loss after tax of N400.44 billion in 2024, The ICIR reported.
According to MTN Nigeria CEO Karl Toriola, the company has remained agile to navigate the uncertainties ahead.
These challenges include successfully renegotiating contracts for their mobile phone towers, obtaining approval for adjustments to their tariffs, and making progress in reducing their exposure to fluctuations in foreign exchange rates, among other operational and regulatory issues.