Telco Giants – Airtel, MTN Sign New Deal For Nigeria, Uganda

Telco Giants – Airtel, MTN Sign New Deal For Nigeria, Uganda

MTN Group and Airtel Africa have agreed to share mobile phone network infrastructure in Nigeria and Uganda.

Statements by the duo on Wednesday said the agreement is aimed at saving investments while still increasing service coverage.

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.

The companies said, “This engagement does not preclude the parties from collaborating with other operators in any respective market.”

Speaking on the agreement, MTN Group CEO Ralph Mupita in a statement said “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.

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.