MTN Group and Airtel Africa have inked a network-sharing agreement in Nigeria and Uganda, a strategic alliance designed to slash operational costs and extend mobile coverage to underserved regions.
Announced amid escalating economic pressures, this collaboration between two of Africa’s telecom titans highlights a shift toward cost optimization while addressing the continent’s surging demand for digital services.
By pooling resources such as towers, base stations, and fiber-optic networks, the companies aim to bolster connectivity in remote areas without the burden of duplicating expensive infrastructure.
The African telecom sector is grappling with significant challenges, nowhere more evident than in Nigeria, the largest market for both MTN and Airtel.
Nigeria contributes 40% of MTN Group’s revenue and 34.4% of Airtel Africa’s, yet both companies have faced revenue declines since 2023 due to the naira’s devaluation.
This currency slump has driven up the cost of network deployment, compelling operators to rethink infrastructure investments. In Uganda, similar economic pressures have underscored the need for efficiency.
By sharing critical infrastructure, MTN and Airtel are poised to manage expenses more effectively while maintaining their commitment to growth in these key markets.
Meeting the Digital Demand Surge
The partnership aligns with a broader trend of rising demand for data services and digital financial solutions across Africa. MTN Group CEO Ralph Mupita underscored this priority, stating, “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.”
In Nigeria, MTN’s market dominance grew to 51% in January, with the addition of over 3 million subscribers, bringing its total to 87.5 million. Airtel Nigeria also reported growth, increasing its subscriber base from 56.6 million in December 2024 to 57.6 million in January 2025. This agreement ensures both companies can sustain this momentum while optimizing resources.
Regulatory Push and Compliance
The deal dovetails with regulatory efforts to enhance service delivery. In January, the Nigerian Communications Commission (NCC) greenlit tariff increases for telecom operators but mandated additional infrastructure deployment within three months.
With the new rates effective from February, MTN and Airtel face a tight timeline to meet these requirements. The network-sharing arrangement serves as a proactive solution, enabling compliance without the prohibitive costs of standalone expansion. This move reflects a pragmatic response to regulatory demands while reinforcing service quality for millions of users.
Broader Ambitions Across Africa
The collaboration extends beyond Nigeria and Uganda, with MTN and Airtel exploring network-sharing prospects in markets like Congo-Brazzaville, Rwanda, and Zambia.
Potential models under consideration include radio access network (RAN) sharing and joint fiber infrastructure projects. Airtel Africa CEO Sunil Taldar emphasized the strategic vision, noting, “As we compete fiercely in the market on the strength of our brand, services, and offerings, we are building common infrastructure within the permissible regulatory framework. This allows us to provide a more robust and extensive digital highway while avoiding the costly duplication of infrastructure.” This approach could redefine telecom operations continent-wide.
A Collaborative Precedent in Nigeria
Prior to this agreement, MTN Nigeria engaged in talks with 9mobile, a struggling local operator, for a mobile-roaming deal. Still under negotiation, the arrangement would allow 9mobile to leverage MTN’s infrastructure in select regions, while MTN gains access to 9mobile’s spectrum.
The Airtel partnership builds on this trend of resource-sharing, signaling a potential wave of consolidation in Nigeria’s telecom sector. Such collaborations could prove vital for smaller players and market leaders alike as they navigate economic uncertainty.
If successful, the MTN-Airtel alliance could pave the way for broader consolidation of network investments across Africa. By reducing redundancy and pooling expertise, the partnership promises enhanced coverage and service reliability at a lower cost.
This model not only addresses immediate financial pressures but also positions both companies to capitalize on Africa’s digital boom. As Mupita and Taldar lead their firms into this new era, the agreement stands as a testament to innovation and adaptability in a challenging landscape.
