- MTN Group and Airtel Africa agreed to share network infrastructure in Uganda and Nigeria
- They said the partnership would help meet the growing demand for digital services
- The telecommunications companies said they are moving beyond competition to achieve a common goal
Telecommunications companies MTN Group and Airtel Africa have entered into agreements to share network infrastructure in Uganda and Nigeria while complying with local regulatory and statutory requirements.
The telcos disclosed this in a joint statement released on Wednesday, March 26, adding that the partnership is to boost their commitment to extend digital and financial inclusion across Africa.
They stated that sharing agreements aim at improved network cost efficiencies, expanded coverage, and the provision of enhanced mobile services to customers, particularly those in remote and rural areas yet to fully enjoy the benefits of a modern connected life.
Partnership to help meet growing demand for digital services
President and Chief Executive Officer of MTN Group, Ralph Mupita, said the agreements were due to the growing demand for digital services on the continent, adding that the partnership would help the operators to meet these demands.
“At MTN, we are driven by the vision of delivering digital solutions that drive Africa’s progress.
“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.
“That said, there are opportunities within regulatory frameworks for sharing resources to drive higher efficiencies and improve returns,” Mupita said.
Moving beyond competition to achieve common goal
The Chief Executive Officer of Airtel Africa, Sunil Taldar, noted that both companies are moving beyond competition to achieve a common goal of ensuring operational efficiency and improved service delivery to customers.
“As we compete fiercely in the market on the strength of our brand, services and our offerings we are building common infrastructure, within the permissible regulatory framework, to provide a more robust and extensive digital highway to drive digital and financial inclusion at the same time avoiding duplication of expensive infrastructure to drive operational efficiencies and benefits for our customers,” he said.
With the conclusion of agreements in Uganda and Nigeria, MTN and Airtel Africa are exploring various opportunities in other markets, including Congo-Brazzaville, Rwanda, and Zambia.
These agreements include RAN sharing and those aimed at establishing commercial and technical agreements for fibre infrastructure sharing and, if necessary, the construction of fibre networks.
The companies said they are dedicated to working with other mobile operators within the countries in which they have a presence to achieve the advantages of network sharing while continuing to function as independent market entities and compete freely in shared markets.
Proceeds from tariff hike will go into infrastructure upgrades, service quality – Telcos
Meanwhile, TheRadar earlier reported that telecommunications operators (telcos) in Nigeria said the proceeds from the proposed 100 per cent tariff increase will be channelled to upgrades of major network infrastructure and service quality.
The Chief Executive Officer of MTN Nigeria, Karl Toriola, disclosed this in a column published in BusinessDay on Monday, January 6, titled, ‘An Inflection Point for Nigeria’s Digital Economy: The Imperative for Sustainability.’
