Two major telecom companies, MTN Group and Airtel Africa, have recently agreed to collaborate on sharing network infrastructure in Nigeria and Uganda. This move is strategic, aiming to cut operational costs and expand mobile coverage to underserved areas. The partnership symbolizes a broader trend among African telecom giants to optimize costs due to challenges like currency devaluation and economic pressures.
Both companies have faced revenue declines in Nigeria, a key market for them, as a result of naira devaluation since 2023. This has led to increased network deployment expenses, prompting MTN and Airtel to join forces in sharing towers, base stations, and fiber-optic networks to manage costs and enhance connectivity in remote regions.
MTN Group CEO Ralph Mupita highlighted that the agreement is geared towards meeting the rising demand for data services and digital financial solutions across Africa. In Nigeria, MTN’s market share grew to 51% in January, while Airtel Nigeria saw an increase in its subscriber base from December 2024 to January 2025.
Prior to this collaboration, MTN Nigeria was in talks with 9mobile, a struggling Nigerian operator, regarding a mobile-roaming deal that would allow mutual use of infrastructure. This new agreement also aligns with regulatory requirements set by the Nigerian Communications Commission (NCC) to enhance service delivery within a specified time frame.
Looking ahead, MTN and Airtel Africa are exploring additional opportunities for network sharing in countries like Congo-Brazzaville, Rwanda, and Zambia. The companies are considering various models such as radio access network (RAN) sharing and agreements focused on fiber infrastructure to avoid duplication of costly resources.
If successful, this collaboration could pave the way for more streamlined network investments across Africa, setting a precedent for industry consolidation.