Telecom giants MTN Group and Airtel Africa have announced a significant network infrastructure-sharing agreement focused on expanding mobile connectivity in Nigeria and Uganda, particularly targeting underserved regions.
This collaboration aims at optimizing costs while enhancing mobile service delivery in rural and remote areas, according to a joint statement released on Wednesday.
The companies indicated that agreements being considered include Radio Access Network sharing and collaborative fibre infrastructure projects, potentially involving the construction of new fibre networks.
Ralph Mupita, MTN Group President and Chief Executive Officer, highlighted the increasing demand for data services across Africa.
“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,” he said.
He further explained, “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.”
Both companies have faced significant financial impacts due to currency fluctuations in Nigeria, where MTN and Airtel hold substantial market shares of 51.79% and 34.11%, respectively.
Sunil Taldar, CEO of Airtel Africa, emphasized the strategic advantages of infrastructure sharing:
“As we compete fiercely in the market on the strength of our brand, services and our offerings we are building common infrastructure, within the permissible regulatory framework,” Taldar stated.
“This provides a more robust and extensive digital highway to drive digital and financial inclusion at the same time avoiding duplication of expensive infrastructure to drive operational efficiencies and benefits for our customers.”
Following successful agreements in Nigeria and Uganda, the telecom operators are also considering similar partnerships in other markets, including Congo-Brazzaville, Rwanda, and Zambia.
Airtel Africa serves over 156 million customers across 14 sub-Saharan African countries, while MTN Group operates in 19 countries in Africa and the Middle East, serving approximately 287 million customers.
