MTN, Airtel to share network infrastructure in Nigeria to ‘reduce cost’

Airtel Africa has partnered with MTN Group to expand digital inclusion by sharing network infrastructure in Uganda and Nigeria.

In a statement in Lagos on Wednesday, Airtel said the sharing agreements aim to improve network cost efficiencies, expand coverage, and provide enhanced mobile services to millions of customers.

A sharing agreement is a formal arrangement between two or more parties to share resources, assets, or services.

According to the telecommunications company, the partnership will benefit customers in remote and rural areas who do not yet fully enjoy the benefits of a modern connected life.

Airtel assured that both parties will ensure the agreement complied with local regulatory and statutory requirements.

Sunil Taldar, chief executive officer (CEO) of Airtel Africa, said telecommunications companies are driving digital financial inclusion by building common infrastructure within the regulatory framework.

Taldar noted that the collaborative approach not only advances digital transformation and financial inclusion but also reduces the duplication of expensive infrastructure.

As a result, Taldar said operational efficiencies are boosted, ultimately benefiting customers.

He further said telecoms continue to compete fiercely in the market, differentiating themselves through their brand, services, and offerings.

“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,” Taldar said.

“The sharing of infrastructure has the potential to enable the delivery of world-class, reliable mobile services to more and more customers across Africa.”

Taldar added that following the conclusion of agreements in Uganda and Nigeria, MTN and Airtel Africa are also exploring various opportunities in other markets, including Congo-Brazzaville, Rwanda, and Zambia.

Ralph Mupita, MTN Group CEO, said there is a need to invest in coverage and capacity to ensure high-quality connectivity to meet customers’ increasing demands.

“As 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.”

Mupita added that there are opportunities within regulatory frameworks for sharing resources to drive higher efficiencies and improve returns.