MTN and Airtel Africa Cut Costs, Expand Coverage Through Network-Sharing Deal

In a strategic move to optimize costs and expand their network coverage, MTN Group and Airtel Africa have signed agreements to share network infrastructure in Uganda and Nigeria. This collaboration is set to reduce resource duplication, enhance operational efficiency, and improve access to digital and financial services across both countries.

As mobile operators face mounting pressure to extend coverage while controlling costs, network sharing has become an essential strategy in the industry. By pooling their infrastructure, MTN and Airtel Africa aim to deliver services to remote and underserved areas more effectively, bypassing the high costs associated with building and maintaining separate networks.

Ralph Mupita, MTN Group President and CEO, shared his thoughts on the collaboration in a statement released on Wednesday, emphasizing the growing demand for digital services across the continent.

“At MTN, we are driven by the vision of delivering digital solutions that accelerate Africa’s progress. We continue to witness strong structural demand for digital and financial services across our markets. To meet this demand, we’re investing in coverage and capacity to ensure high-quality connectivity for our customers. There are, however, opportunities within regulatory frameworks for sharing resources that can lead to higher efficiencies and better returns,” Mupita said.

Airtel Africa CEO Sunil Taldar echoed Mupita’s sentiment, adding: “As we compete fiercely in the market with our brand, services, and offerings, we’re focusing on building shared infrastructure within permissible regulatory frameworks. This will provide a more robust and extensive digital highway, promoting digital and financial inclusion while avoiding the duplication of costly infrastructure, resulting in improved operational efficiencies and benefits for our customers.”

This move aligns with a growing global trend toward network sharing. By working together, telecom operators can explore innovative solutions that enhance service quality while managing costs effectively. Sharing infrastructure also presents an opportunity to deliver reliable mobile services to a larger customer base across Africa.

Following the agreements in Uganda and Nigeria, MTN and Airtel Africa are looking to expand this collaboration to other markets, including Congo-Brazzaville, Rwanda, and Zambia. The companies are considering various types of agreements, such as Radio Access Network (RAN) sharing, as well as commercial and technical agreements for fiber infrastructure sharing. In some cases, the construction of new fiber networks may be explored.

Both MTN and Airtel Africa remain committed to working with other mobile operators in the countries where they operate to fully realize the benefits of network sharing. While collaborating on infrastructure, the two companies will continue to operate as independent entities and compete freely in shared markets. This partnership does not prevent either operator from collaborating with other companies in their respective markets.