MTN Nigeria: Tower contract award to ATC final | No revised offer received

MTN Nigeria says its award of contract to American Tower Corporation (ATC) for the lease of over 2,500 tower sites is final. 

The telecommunications firm took the position in a statement on Tuesday, denying media reports that IHS Towers has offered the telco improved terms for the lease of 2,500 sites that match the terms of ATC.

ATC had won the contract — which would be effective in 2025 — after it was announced by MTN Nigeria three months ago.

Addressing the claims, MTN Nigeria said the reports are not true, adding no revised offer has been received from IHS.

“We announced in September that the lease for the 2,500 sites (which was due to expire in 2024 and 2025) had been awarded to ATC after a very fair and transparent procurement procces,” MTN Nigeria said.

Speaking on the issue, Tobechukwu Okigbo, MTN Nigeria’s chief corporate services and sustainability officer, said the agreement with ATC over the 2,500 sites is final, “having gone through a rigorous process involving our highest governance approvals”.

“Our preference is always for bilateral renewal, subject to competitive pricing and terms. In this instance the ATC proposal was superior,” he said.

“MTN will continue to engage constructively with IHS on further opportunities that arise, including the renewal of the next vintages of towers that come up for renewals in 2025. 

“Other opportunities for value optimisation will arise and we will undertake a similar exacting process. We are hopeful that participating parties, including IHS, will present a compelling proposition.”

Okigbo dismissed claims that contracting the sites to ATC would lead to network disruptions and have a negative environmental impact.

“Such allegations are factually incorrect and misleading. Tower transfers between two infrastructure companies do not necessarily lead to network disruption,” he said.

He expressed confidence that ATC’s plans will ensure a smooth transition between towers. 

“Through our partnership with ATC, we are setting the stage for a new era of connectivity in Nigeria, one that not only meets the growing demands of our customers but also aligns with our focus on expense efficiencies, commitment to sustainability and environmental responsibility,” Okigbo said.

‘ATC TO ADHERE STRICTLY TO NCC, NESREA REGULATIONS’

MTN said it expects ATC to adhere strictly to NCC guidelines and the National Environmental Standards and Regulations Enforcement Agency (NESREA) rules on deploying telecom sites.

“We are deeply committed to achieving net-zero emissions and part of the differentiated value ATC provides is a commitment to operating green sites, ensuring significant reduction in carbon emissions,” he said.

Okigbo also said contrary to the claims of harmful environmental impact, the partnership with ATC will reduce greenhouse gases.