MTN Group and Airtel Africa have entered into agreements to share network infrastructure in Uganda and Nigeria, while ensuring compliance with local regulatory and statutory requirements.
In a joint statement published today, the two multinationals said, the sharing agreements target improved network cost efficiencies, expanded coverage and the provision of enhanced mobile services to millions of telecom service users, particularly those in remote and rural areas who do not yet fully enjoy the benefits of a modern connected life.
The initiative is part of a growing global trend toward network sharing where telecom operators explore innovative and pro-competitive solutions to improve service quality while managing costs more effectively.
Following 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. Among the types of agreements considered are Radio Access Network (RAN) sharing and those aimed at establishing commercial and technical agreements for fibre infrastructure sharing and, if necessary, the construction of fibre networks.
MTN Group President and Chief Executive Officer Ralph Mupita said operators on the continent were seeing sustained demand for data services and strong structural demand for digital and financial services across our markets.
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Airtel Africa Chief Executive Officer Sunil Taldar said: “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.”
MTN Group and Airtel Africa said in the joint statement that the two multinational telecom are dedicated to working with other mobile operators within the countries in which they have a presence to achieve the advantages of network sharing.
“Throughout this process, the parties will continue to function as independent market entities and will compete freely in shared markets. This engagement does not preclude the parties from collaborating with other operators in any respective market,” the statement concludes.