MTN and Airtel plan to cut costs with a network-sharing deal.

The agreement aims to cut costs and improve mobile connectivity in underserved areas by sharing network infrastructure in Nigeria and Uganda.

MTN and Airtel will explore collaboration models such as Radio Access Network sharing and fibre partnerships, potentially building new fibre networks where needed.

Announced on Wednesday, the deal seeks to optimize expenses and enhance service delivery, especially in rural areas.

Both telecom giants, holding 51.79% and 34.11% of Nigeria’s market, have faced forex losses due to the naira’s depreciation.

To mitigate FX exposure, MTN and Airtel have scaled back network investments, aiming to reduce forex losses and manage rising costs like surging energy prices.

Despite this, MTN Group CEO Ralph Mupita emphasized that growing demand for data services across Africa underscores the need for strategic investments.

“At MTN, we are driven by the vision of delivering digital solutions that drive Africa’s progress and will 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,” he said in a statement.

After agreements in Nigeria and Uganda, MTN and Airtel are considering similar infrastructure-sharing deals in Congo-Brazzaville, Rwanda, and Zambia.

Airtel Africa CEO Sunil Taldar called the partnership a practical way to expand digital infrastructure while maintaining cost efficiency.

“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 provides a more robust and extensive digital highway to drive digital and financial inclusion while avoiding duplication of expensive infrastructure to drive operational efficiencies and benefits for our customers,” he said.

Airtel Africa serves over 156 million customers in 14 sub-Saharan African countries, while MTN Group operates in 19 countries across Africa and the Middle East, with 287 million subscribers.