In a bid to extend digital and financial inclusion across Africa, the MTN Group and Airtel Africa have entered into agreements to share network infrastructure in Uganda and Nigeria.
Airtel made this known in a statement on Wednesday in Lagos State.
According to the statement, both parties will ensure the agreement is compliant with local regulatory and statutory requirements.
It said the sharing agreements target improved network cost efficiencies, expanded coverage and the provision of enhanced mobile services to millions of customers.
It stressed that the enhanced service would particularly benefit customers in remote and rural areas who do not yet fully enjoy the benefits of a modern connected life.
Commenting, the MTN Group President and Chief Executive Officer, Ralph Mupita, said operators on the continent were seeing sustained demand for data services.
Mupita said: “As MTN, we are driven by the vision of delivering digital solutions that drive Africa’s progress.
“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.”
Also, Sunil Taldar, the Managing Director and Chief Executive Officer of Airtel Africa, said that telecommunications companies competed fiercely in the market on the strength of their brand, services and offerings.
Taldar noted that even as the telcos competed, they were also building common infrastructure within the permissible regulatory framework.
According to him, this approach will not only provide a more robust and extensive digital highway, but also foster digital financial inclusion.
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The Airtel Africa boss said that the approach would also reduce duplication of expensive infrastructure, while driving operational efficiencies that would ultimately benefit customers.
He said: “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.”
Taldar noted that following the conclusion of agreements in Uganda and Nigeria, MTN and Airtel Africa were also exploring various opportunities in other markets, including Congo-Brazzaville, Rwanda and Zambia.
The News Agency of Nigeria reports that among the types of agreements considered were RAN sharing, those aimed at establishing commercial and technical agreements for fibre infrastructure sharing and, if necessary, the construction of fibre networks.
NAN reports further that throughout the process, the parties will continue to function as independent market entities and would also compete freely in shared markets.
The engagement does not preclude the parties from collaborating with other operators in any respective market.
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