Telecommunications giants MTN Group and Airtel Africa join forces to collaborate on shared network infrastructures in Nigeria and Uganda.
MTN Group and Airtel Africa have entered into network infrastructure-sharing agreements primarily in Nigeria and Uganda, aiming to reduce costs, accelerate 4G/5G rollout, and extend network coverage, especially to underserved and rural areas.
These agreements involve sharing of tower infrastructure, fiber networks, and small cells to improve network efficiency and reach. The goal is to reduce capital expenditure and operational costs in light of rising infrastructure investments, while improving service reliability and broadband speeds.
The collaboration enables faster deployment of 4G and 5G networks by leveraging existing assets. Extending digital connectivity to rural and remote communities helps bridge Africa’s substantial digital divide. It supports expansion of digital services including mobile banking, e-learning, and enhanced internet access.
The success and expansion of infrastructure sharing in key markets like Nigeria and Uganda are setting a precedent for more cost-effective and scalable network deployment models across the continent. Shared infrastructure reduces duplication of assets and accelerates coverage expansion particularly in less profitable rural areas, potentially encouraging more operators to enter into similar agreements.
These partnerships facilitate wider 5G rollouts and improved internet reliability, critical for advancing Africa's digital economy and inclusion. Regulators are increasingly supportive of infrastructure sharing, easing approvals, which may lead to accelerated adoption of such models continent-wide.
In Nigeria, MTN saw its market share rise to 51% in January, adding over 3 million new subscribers. The agreement aligns with regulatory efforts, as the Nigerian Communications Commission (NCC) mandated operators to deploy additional infrastructure within three months to improve service delivery.
The partnership between MTN Group and Airtel Africa could potentially pave the way for further consolidation in network investments across Africa. Both telecom giants have faced revenue declines since 2023, due to the depreciation of the naira. The falling currency value has raised network deployment costs, compelling operators to cut back on infrastructure investment.
Airtel Africa's Chief Executive Officer, Sunil Taldar, stated that the partnership with MTN Group aims to provide a more robust and extensive digital highway without duplicating infrastructure. The success of this partnership could have implications for future consolidation in network investments across Africa.
In summary, the MTN Group and Airtel Africa infrastructure sharing agreements represent a strategic shift towards collaborative network deployment in Africa, with goals of cost reduction, network expansion, and accelerated technology rollout. This model is influencing other major African markets by demonstrating the benefits of cooperative infrastructure strategies in driving connectivity and digital transformation across the continent.
[1] MTN Group and Airtel Africa Collaborate on Network Infrastructure Sharing [2] MTN and Airtel Africa Infrastructure Sharing Agreement [3] Airtel Africa's Revenue Decline and Network Infrastructure Sharing [4] MTN and Airtel Africa's Joint Venture to Boost Digital Infrastructure in Africa [5] Africa's Digital Divide and the Role of Infrastructure Sharing
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