MTN Group and Airtel Africa have entered into agreements to share network infrastructure in Uganda and Nigeria, while ensuring compliance with local regulatory and statutory requirements.
The two companies, in a joint statement released on Wednesday, said the partnership is to boost their resolve to extend digital and financial inclusion across Africa.
These sharing agreements target improved network cost efficiencies, expanded coverage, and the provision of enhanced mobile services to millions of customers, particularly those in remote and rural areas who do not yet fully enjoy the benefits of a modern connected life.
Meeting demand for digital services
Speaking on the agreements, MTN Group President and Chief Executive Officer Ralph Mupita said operators on the continent were seeing sustained demand for digital services and the partnership would help to meet these demands.
“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,” he said.
For Airtel Africa Chief Executive Officer Sunil Taldar, the two companies are moving beyond competition to achieve a common goal.
“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, to provide 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 said.
What this means
The initiative is part of a growing global trend toward network sharing. By collaborating, telecoms operators can explore innovative and pro-competitive solutions to improve service quality while managing costs more effectively.
- The sharing of infrastructure has the potential to enable the delivery of world-class, reliable mobile services to more and more customers across Africa.
- Following the conclusion of agreements in Uganda and Nigeria, MTN and Airtel Africa are exploring various opportunities in other markets, including Congo-Brazzaville, Rwanda, and Zambia.
- Among the types of agreements considered are RAN sharing and those aimed at establishing commercial and technical agreements for fibre infrastructure sharing and, if necessary, the construction of fibre networks.
MTN Group and Airtel Africa said they are dedicated to working with other mobile operators within the countries in which they have a presence to achieve the advantages of network sharing.
Throughout this process, the parties will continue to function as independent market entities and will compete freely in shared markets.
