Karl Toriola, chief executive officer (CEO) of MTN Nigeria, says the company’s recent roaming agreement with T2, formerly known as 9mobile, was designed to support local operators and strengthen the Nigerian telecommunications industry.
A roaming agreement is a deal between telecom operators that allows the customers of one network to use the services and infrastructure of another, particularly in locations where their own network is unavailable.
On July 2, MTN Nigeria announced a three-year national roaming agreement with Emerging Markets Telecommunications (EMT) Services Limited, enabling 9mobile subscribers to access MTN’s extensive network infrastructure across the country.
Toriola, who spoke on Thursday in Lagos, said the deal allows T2 subscribers to roam on MTN’s network nationwide, giving them instant access to wider coverage and better service quality.
Advertisement
“The primary reason why we did the roaming agreement was to provide support to Nigerian operators to continue to thrive,” he said.
“Just like when you travel abroad and roam on a partner’s network, all 9mobile SIMs will now be roaming on MTN up to 4G.
“This gives them overnight national coverage with all the technology and quality of service MTN has.”
Advertisement
He added that the agreement eases 9mobile’s capital burden, eliminating the need for billions of dollars in network rollout.
Instead, the company pays MTN for usage, while retaining the ability to compete effectively in the market.
“This way, they don’t have to find massive funding. To roll out a network in Nigeria, you need around $2 billion upfront and recover it over years. With this model, they pay only as they consume,” Toriola said.
The MTN boss also shed light on a broader infrastructure-sharing arrangement with Airtel, noting that Nigerian operators already lease capacity particularly on fibre from each other.
Advertisement
He said the new agreement is meant to expand such collaborations and reduce duplication of infrastructure, especially in semi-urban areas.
Beyond industry partnerships, Toriola highlighted MTN Nigeria’s financial outlook, saying the company expects to exit negative shareholders’ funds by the third quarter ending September.
The CEO also said the telco is committed to investing heavily in capacity and quality of service, despite macroeconomic headwinds.
Advertisement
