Nigeria’s Federal Government has released an urgent warning to telecom giants MTN Nigeria (MTN NG) and IHS Towers, telling them that their ongoing collocation dispute could cause problems with telecom services.
Media reports that the Nigerian Communications Commission (NCC) will meet with both companies today. which means that the government is stepping in to fix a long-standing problem in the telecom sector.
The government is apprehensive about the ongoing collocation dispute between MTN Nigeria, which is the biggest mobile phone company in the country, and IHS Towers, which is the most prominent independent owner and user of shared telecommunications infrastructure.
According to people who know about the situation, the telecom regulator has not only warned of harsh punishments if the quality of service drops, but they have also told both sides not to say anything in public that could make things worse.
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Things you need to know about the MTN NG/IHS war
The NCC stepped in because the big telecom companies were fighting over who should lease cellphone towers. American Tower Corporation (ATC) recently signed a lease for 2,500 towers with MTN Nigeria. The company said the change would not affect the country’s network connections.
IHS Towers responded by saying they were worried about how the lease to ATC might affect network services in Nigeria. To avoid these problems, IHS Towers made better business terms available to MTN to close the gap between their offers.
Sam Darwish, Chairman and CEO of IHS Towers, said, “Our main goal is to prevent any potential network disruption in Nigeria. To do this, we have offered better commercial terms on the 2,500 towers.”
But MTN Nigeria made it clear that their deal with ATC was final, saying it was reached after a strict bidding process.
“Our partnership with ATC is a strategic move to meet our customers’ growing demands while ensuring cost efficiency and sustainability,” said MTN Nigeria Chief Corporate Services and Sustainability Officer Tobechukwu Okigbo. The 2,500-site agreement with ATC is final after a laborious procedure comprising our highest governance approvals.”
IHS Towers tried to match ATC’s terms, but MTN Nigeria confirmed their agreement. The telecom giant renewed its willingness to work with IHS on prospects, including site renewals while emphasising the ATC proposal’s superiority.
MTN Nigeria’s battle with the tower company could impair Nigeria’s communication services. Hence, the Federal Government’s participation is crucial. The NCC’s discussion with the companies shows a continued commitment to maintaining telecom service quality despite industry conflicts.