MTN Group and Airtel Africa have announced a strategic partnership to share mobile phone network infrastructure in Uganda and Nigeria, as revealed in a joint statement on Wednesday. This collaboration aims to optimize investment expenditures while simultaneously enhancing service coverage across these key markets.
As mobile operators in Africa experience a persistent surge in demand for digital and financial services, the financial burden of constructing and maintaining robust networks—particularly with the advent of high-speed 5G technology—has become increasingly challenging. The costs associated with building and operating these networks can be prohibitive, especially in regions where the return on investment is uncertain.
Ralph Mupita, the CEO of MTN Group, emphasized the potential benefits of this partnership, stating, “There are opportunities within regulatory frameworks for sharing resources to drive higher operational efficiencies and improve returns.” This sentiment was echoed by Sunil Taldar, CEO of Airtel Africa, who noted that the agreement is designed to eliminate the redundancy of costly infrastructure, thereby streamlining operations.
Prior to finalizing this agreement, MTN Nigeria, a subsidiary of MTN Group, was engaged in talks with 9mobile, a Nigerian operator facing significant challenges and a substantial loss of subscribers. The proposed mobile-roaming arrangement, which is still in the negotiation phase, would enable 9mobile to utilize MTN Nigeria’s infrastructure in specific regions. In exchange, MTN would acquire access to 9mobile’s spectrum, creating a mutually beneficial partnership.
By sharing infrastructure, both companies can accelerate the expansion of their network coverage, particularly in rural or sparsely populated areas where establishing independent networks may not be financially feasible. This collaborative approach not only enhances service availability but also promotes greater accessibility for consumers in underserved regions.
Following the successful establishment of agreements in Uganda and Nigeria, MTN and Airtel Africa are looking to explore additional opportunities for collaboration in other markets, including Congo-Brazzaville, Rwanda, and Zambia. The companies indicated that they are considering various initiatives, such as sharing radio access networks—the most significant component of network deployment and operational costs—as well as entering into commercial and technical agreements for sharing fiber infrastructure.
Furthermore, if required, they may also pursue the construction of new fiber networks. Importantly, the companies clarified that this partnership does not restrict them from collaborating with other operators within their respective markets, allowing for a broader scope of cooperation in the telecommunications landscape.
