MTN Group and Airtel Africa have partnered to share network infrastructure in Nigeria and Uganda, aiming to enhance mobile connectivity in underserved areas.
The agreement, announced on Wednesday, reflects a growing trend toward cost optimisation and seeks to improve mobile services, especially in rural and remote regions where many people still lack access to modern connectivity.
The partnership includes Radio Access Network (RAN) sharing and agreements to establish technical and financial frameworks for sharing fiber infrastructure. In some cases, new fiber networks may be built where necessary.
Ralph Mupita, president and chief executive officer of the MTN Group, stated that the demand for data services has remained high across the continent.
He said, “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 added, “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.”
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Impact of naira devaluation on MTN and Airtel’s revenue
The devaluation of the naira has resulted in substantial foreign exchange losses for MTN and Airtel, who hold 51.79 percent and 34.11 percent of Nigeria’s telecom market, respectively.
Airtel Africa Chief Executive Officer Sunil Taldar said, “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.”
“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,” he emphasised.
MTN-Airtel network infrastructure-sharing deal to extend to other African markets
MTN and Airtel Africa are exploring a number of prospects in additional markets, including Congo-Brazzaville, Rwanda, and Zambia, subsequent to the execution of agreements in Uganda and Nigeria.
Airtel Africa serves more than 156 million users in 14 countries in sub-Saharan Africa.
With 287 million clients, MTN Group’s main businesses are spread over 19 Middle Eastern and African nations.