MTN Group and Airtel Africa have agreed to share mobile phone network infrastructure in Nigeria and Uganda.
This deal will boost network connectivity for MTN Nigeria and Airtel Nigeria’s 145.22 million subscribers.
Statements by the duo on Wednesday said the agreement is aimed at saving investments while still increasing service coverage.
MTN and Airtel noted that the deal complies with local regulatory and statutory requirements. They explained that the sharing agreements target improved network cost efficiencies, expanded coverage and the provision of enhanced mobile services to their customers, particularly those in remote and rural areas.
Ralph Mupita, MTN group president and chief executive officer, said, “As MTN, we are driven by the vision of delivering digital solutions that drive Africa’s progress.
The companies said, “This engagement does not preclude the parties from collaborating with other operators in any respective market.”
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“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. That said, there are opportunities within regulatory frameworks for sharing resources to drive higher efficiencies and improve returns.”
Sunil Taldar, Airtel Africa CEO stated, “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, to provide 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.”
Mobile operators in Africa are seeing sustained demand for digital and financial services, but building and maintaining networks is expensive, especially for fast 5G connections.
The companies also said they will explore various opportunities in other markets, including Congo-Brazzaville, Rwanda and Zambia.
Among the deals under consideration are radio access network sharing, the largest portion of the cost in network deployment and operation; commercial and technical agreements for fibre infrastructure sharing; and, if necessary, the construction of fibre networks, they added.
According to the International Telecommunication Union (ITU), sharing mobile infrastructure is an alternative that lowers the cost of network deployment, especially in rural areas or marginal markets. MTN and Airtel are joining a global trend with Orange and Vodafone agreeing to share infrastructure in the United Kingdom and in Spain recently.
MTN and Airtel will continue to continue to function as independent market entities and compete freely in shared markets. Following the conclusion of agreements in Uganda and Nigeria, they stated that they are exploring various opportunities in other markets, including Congo-Brazzaville, Rwanda and Zambia.
That said, there are opportunities within regulatory frameworks for sharing resources to drive higher efficiencies and improve returns.”
Airtel Africa Chief Executive Officer Sunil Taldar said the agreement would avoid duplication of expensive infrastructure.
He added that sharing infrastructure allows 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.
The engagement also doesn’t preclude parties from collaborating with other operators in any respective market, with both operators stating that they are dedicated to working with other mobile operators in the countries they operate in.
