In a strategic move to enhance service delivery and optimize operational costs, MTN Group and Airtel Africa have entered into agreements to share mobile network infrastructure in Uganda and Nigeria. This collaboration aims to expand coverage and provide improved mobile services, particularly in underserved rural areas, while adhering to local regulatory and statutory requirements.
The telecommunications sector in Africa is experiencing a surge in demand for digital and financial services. However, the substantial investments required for network expansion, especially with the advent of 5G technology, present significant financial challenges. By sharing infrastructure, both companies aim to mitigate these costs and accelerate network deployment.
Ralph Mupita, President and CEO of MTN Group, emphasized the benefits of resource sharing within existing regulatory frameworks to achieve greater efficiencies and improved returns. Sunil Taldar, CEO of Airtel Africa, highlighted that this agreement would prevent the duplication of costly infrastructure, thereby enhancing operational efficiency.
Infrastructure sharing enables operators to extend network coverage more rapidly, especially in regions where establishing separate networks may not be economically viable. Following the implementation of these agreements in Uganda and Nigeria, MTN and Airtel Africa plan to explore similar opportunities in other markets, including Congo-Brazzaville, Rwanda, and Zambia. Potential collaborations under consideration encompass radio access network sharing—the most significant cost component in network deployment—and agreements for fiber infrastructure sharing, with the possibility of constructing new fiber networks as needed.
Both companies have stated that this collaboration does not preclude them from partnering with other operators in their respective markets, maintaining a competitive and open approach to future opportunities