MTN Group, Airtel Africa stun markets with network sharing pact
In an unexpected move this morning, MTN Group and Airtel Africa announced an agreement to share network infrastructure in Uganda and Nigeria, while adhering to to local regulatory and statutory requirements.
According to telcos, the move was motivated by a desire to increase digital and financial inclusiveness throughout Africa.
Following the completion of agreements in Uganda and Nigeria, MTN and Airtel Africa are now looking into potential opportunities in other areas like Congo-Brazzaville, Rwanda, and Zambia.
According to MTN Group, the types of agreements under consideration include RAN sharing and those targeted at establishing commercial and technical agreements for fibre infrastructure sharing and, if necessary, fibre network building.
The project, according to the two companies, is part of a rising global trend of network sharing.
“By working together, telecom operators can explore creative and pro-competitive ideas to increase service quality while controlling costs more effectively,” they said.
They went on to remark that infrastructure sharing has the potential to enable the delivery of world-class, reliable mobile services to an increasing number of African customers.
MTN Group, Africa’s largest telco has over 288 million customer and footprint in 19 markets, while Airtel Africa operates in 14 countries across the continent.
The telcos said the signed sharing agreements target improved network cost efficiencies, expanded coverage and the provision of enhanced mobile services to millions of customers, particularly those in remote and rural areas.
MTN Group President and Chief Executive Officer Ralph Mupita said operators on the continent were seeing sustained demand for data services, adding: “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.”
Sunil Taldar, CEO of Airtel Africa, stated: As we compete fiercely in the market on the strength of our brand, services and our offerings we are building common infrastructure, with in 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”.
In addition, MTN Group and Airtel Africa committed 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.”