Telecommunications leaders MTN Group and Airtel Africa have announced their agreement to share infrastructure for their networks in Nigeria and Uganda, marking a strategic move to reduce operational costs and improve mobile connectivity across Africa.
The partnership will allow both companies to share critical network infrastructure, including radio access networks and fiber-optic systems, particularly in rural and less populated areas where building separate networks is economically challenging.
This collaboration comes at a critical time for both companies, which have been struggling with significant financial pressures. MTN reported a substantial loss after tax in 2024, while Airtel experienced declining mobile service revenues, largely due to currency devaluation and economic challenges in key markets.
MTN Group CEO Ralph Mupita emphasized the strategic rationale, stating the agreement will help meet growing demand for digital and financial services while driving operational efficiencies. Airtel Africa’s CEO Sunil Taldar highlighted the importance of avoiding expensive infrastructure duplication.
Beyond Nigeria and Uganda, the companies are exploring similar infrastructure-sharing opportunities in Congo-Brazzaville, Rwanda, and Zambia. The move aligns with regulatory efforts to improve telecommunications infrastructure and service delivery.
Read also: Bolt suspended in Tunisia amid money laundering investigation
The partnership could potentially set a precedent for future collaborative approaches in the African telecommunications sector, offering an innovative solution to manage rising network deployment costs while expanding digital connectivity.
Both companies remain committed to competing on service quality and offerings, while finding strategic ways to optimize their network investments.
