MTN, Airtel collaborate to enhance network coverage across Nigeria and Uganda

In a strategic move to optimise operational costs and extend service reach, MTN Group and Airtel Africa have signed a network-sharing agreement covering Nigeria and Uganda.

This partnership allows the telecom giants to share infrastructure, such as towers, base stations, and fiber-optic networks, aiming to enhance connectivity, particularly in underserved rural regions. The agreement aims to meet the growing demand for data services and digital financial solutions across Africa.

“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,” Ralph Mupita, MTN Group CEO, said in a statement.

This partnership reflects a shift in the African telecom industry towards collaborative competition to address economic challenges and enhance service delivery. Both companies are exploring similar agreements in other African markets, including Congo-Brazzaville, Rwanda, and Zambia.

The African telecom industry has faced significant economic pressures, including currency devaluation and escalating infrastructure costs. In Nigeria, which contributes 40% of MTN Group’s revenue and 34.4% of Airtel Africa’s, the devaluation of the naira since 2023 has inflated network deployment expenses, compelling operators to seek cost-effective solutions. By collaborating, MTN and Airtel aim to manage these financial challenges while improving service delivery.

Sharing network infrastructure enables both companies to expedite network expansion into remote and less densely populated areas where building separate networks would be economically unfeasible. This initiative is expected to lead to improved network reliability, reduced downtimes, and an enhanced user experience for customers in these regions.

Beyond Nigeria and Uganda, MTN and Airtel are considering extending their network-sharing initiatives to other African markets, including Congo-Brazzaville, Rwanda, and Zambia. Potential collaborations may involve radio access network (RAN) sharing and agreements for fiber infrastructure sharing, aiming to replicate the benefits of their current partnership on a broader scale.

“As we compete fiercely in the market on the strength of our brand, services, and offerings, we are building common infrastructure within the permissible regulatory framework. “This allows us to provide a more robust and extensive digital highway while avoiding the costly duplication of infrastructure,” said Sunil Taldar, Airtel Africa CEO.

This agreement signifies a notable shift in the African telecom landscape, where fierce competitors are now collaborating to overcome common challenges. By pooling resources, MTN and Airtel demonstrate a commitment to innovative solutions that enhance service delivery and operational efficiency, setting a precedent for future partnerships in the industry.