MTN Group and Airtel Africa have signed a groundbreaking network infrastructure-sharing agreement in Nigeria and Uganda aimed at enhancing mobile connectivity and reducing operational costs, particularly in underserved rural regions. The deal, announced on Wednesday, outlines the companies’ intentions to collaborate on various network models, including Radio Access Network sharing and fibre infrastructure partnerships, which could also involve the construction of new fibre networks where necessary.
According to the statement from the telecom giants, the primary objective of this collaboration is to optimise operational expenses and improve service delivery, especially in areas where access to digital services has remained limited. This move is particularly important as both companies seek to bolster mobile network infrastructure in regions where the demand for data services is growing rapidly.
MTN and Airtel, which together dominate Nigeria’s telecom market with 51.79% and 34.11% market shares, respectively, have both faced challenges due to foreign exchange losses following the depreciation of the Nigerian naira. These financial pressures have impacted their ability to invest heavily in new infrastructure projects. In response, both companies have slowed down their investments as part of a strategy to mitigate foreign exchange risks and manage the rising operational costs, including energy price hikes.
MTN Group President and CEO Ralph Mupita emphasised that the continued demand for data services across Africa drives the need for strategic investments. “At MTN, we are driven by the vision of delivering digital solutions that drive Africa’s progress,” Mupita said. “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.”
Despite the financial challenges, Mupita sees potential for collaboration with Airtel and other telecom providers. “There are opportunities within regulatory frameworks for sharing resources to drive higher efficiencies and improve returns,” he added, highlighting that the network-sharing model will allow both companies to manage costs while increasing service coverage.
Airtel Africa’s CEO, Sunil Taldar, also expressed optimism about the partnership, calling it a “practical approach to building a more extensive digital infrastructure while ensuring cost efficiency.” Taldar explained that while both companies fiercely compete in the market, the shared infrastructure would help reduce the duplication of costly infrastructure investments. “This provides a more robust and extensive digital highway to drive digital and financial inclusion,” he said. “By building common infrastructure within the regulatory framework, we can improve operational efficiencies and offer greater benefits to our customers.”
The collaboration between MTN and Airtel extends beyond Nigeria and Uganda. Both operators are now exploring similar infrastructure-sharing opportunities in other markets across the continent, including Congo-Brazzaville, Rwanda, and Zambia. The success of this agreement could set a precedent for future partnerships in other African nations.
Together, MTN and Airtel serve millions of customers across sub-Saharan Africa, with MTN operating in 19 countries and having a customer base of 287 million, while Airtel Africa serves over 156 million customers across 14 countries.
