MTN Group and Airtel Africa have taken a significant step towards cost optimization by signing an agreement to share network infrastructure in Nigeria and Uganda. This rare collaboration between two major African telecom giants is aimed at reducing rising operational costs while expanding mobile coverage to underserved areas.

The move is particularly significant in Nigeria, the biggest market for both companies, which has been struggling with revenue declines since 2023 due to naira devaluation. The currency slump has inflated network deployment costs, forcing operators to scale back infrastructure investment. By sharing towers, base stations, and fiber-optic networks, MTN and Airtel aim to manage expenses while improving connectivity in remote areas.

According to MTN Group CEO Ralph Mupita, the agreement aims to meet the growing demand for data services and digital financial solutions across Africa. In Nigeria, MTN's market share grew to 51% in January, adding over 3 million new subscribers to reach a total of 87.5 million. Airtel Nigeria expanded its subscriber base from 56.6 million in December 2024 to 57.6 million in January 2025.

Mupita stated, "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." The agreement aligns with regulatory efforts, as the Nigerian Communications Commission (NCC) approved telecom tariff increases in January, requiring operators to deploy additional infrastructure within three months to improve service delivery.

Before striking this deal, MTN Nigeria was in discussions with 9mobile, a struggling Nigerian operator that has lost millions of subscribers. The mobile-roaming deal, still under negotiation, would allow 9mobile to use MTN Nigeria's infrastructure in select areas, while MTN would gain access to 9mobile's spectrum in return.

Beyond Uganda and Nigeria, MTN and Airtel Africa are exploring further network-sharing opportunities in other African markets, including Congo-Brazzaville, Rwanda, and Zambia. The companies are considering various models, including radio access network (RAN) sharing and agreements focused on fiber infrastructure sharing and construction of new fiber networks.

Airtel Africa Chief Executive Officer Sunil Taldar noted, "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."

If successful, the partnership could set a precedent for further consolidation in network investments across the continent. The move is seen as a strategic shift towards cost optimization among African telecom giants, as they navigate the challenges of currency devaluation and economic headwinds.