MTN CEO Ralph Mupita. The group plans to extend its network sharing agreement with Airtel Africa in Uganda and Nigeria, to other African countries in time and within regulations.
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MTN Group and Airtel Africa have entered into agreements to share network infrastructure in Uganda and Nigeria as they further extend digital and financial inclusion, and they are considering opportunities in other countries on the continent.
The 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 who do not yet fully enjoy the benefits of a modern connected life.
“We continue to see strong structural demand for digital and financial services across our markets. To meet this demand, we invest in coverage and capacity to ensure high-quality connectivity for our customers,” said MTN Group President and CEO Ralph Mupita.
“That said, there are opportunities within regulatory frameworks for sharing resources to drive higher efficiencies and improve returns.”
He said operators on the continent were seeing sustained demand for data services.
“As we compete fiercely 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,” said Airtel Africa CEO Sunil Taldar in a statement.
“Another advantage of the partnership is that it avoids duplication of expensive infrastructure to drive operational efficiencies and benefits for customers.”
The initiative is part of a growing global trend toward network sharing. By collaborating, telecoms operators can explore innovative and pro-competitive solutions to improve service quality while managing costs more effectively.
“The sharing of infrastructure has the potential to enable the delivery of world-class, reliable mobile services to more and more customers across Africa,” said Taldar.
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 RAN (Radio Access Network) sharing and those aimed at establishing commercial and technical agreements for fibre infrastructure sharing and, if necessary, the construction of fibre networks.
MTN Group and Airtel Africa said they would work 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,” MTN said in a statement.
In South Africa, Telkom, Vodacom and MTN are known to have network sharing agreements, particularly in areas where they lack their own coverage, through roaming agreements and shared tower infrastructure.
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