In a decisive move, the Federal Government of Nigeria has issued a stern warning to telecommunications giants MTN Nigeria (MTN NG) and IHS Towers, urging them to avoid potential disruptions to telecom services amidst an ongoing collocation dispute.
According to reports from TechnologyTimes, the Nigerian Communications Commission (NCC) is set to meet today with both companies, signaling the government’s intervention in a prolonged conflict affecting the telecom sector.
The government’s intervention comes as a response to the persistent collocation dispute between MTN Nigeria, the country’s largest mobile phone company, and IHS Towers, the largest independent owners and operators of shared telecommunications infrastructure.
Understanding the MTN NG/IHS Dispute
This government involvement comes amid a standoff between the telecom giants, revolving around the lease of telecom towers. MTN Nigeria recently concluded the lease of 2,500 towers to American Tower Corporation (ATC), asserting that this transition would not disrupt the country’s network connectivity.
In response, IHS Towers expressed concerns, suggesting that the lease to ATC could potentially disrupt network services in Nigeria. To avert such disruptions, IHS Towers offered improved commercial terms to MTN, attempting to bridge the gap between offers.
Sam Darwish, Chairman and CEO of IHS Towers, remarked, “Our main aim is to prevent any potential network disruption in Nigeria, and to achieve this, we have offered improved commercial terms on the 2,500 towers.”
However, MTN Nigeria emphasized the finality of its agreement with ATC, explaining that a rigorous procurement process led to the deal.
MTN’s Perspective
Tobechukwu Okigbo, Chief Corporate Services and Sustainability Officer at MTN Nigeria stated, “Our partnership with ATC marks a strategic move aimed at meeting our customers’ growing demands while ensuring cost efficiency and sustainability. The agreement with ATC over the 2,500 sites is final, having gone through a rigorous process involving our highest governance approvals.”
Despite IHS Towers’ attempts to match ATC’s terms, MTN Nigeria reaffirmed the conclusiveness of their arrangement with ATC. The telecom giant reiterated its commitment to engaging constructively with IHS on future opportunities, including site renewals, while emphasizing the superiority of the ATC proposal in the present instance.
The Federal Government’s intervention signals a critical attempt to mitigate potential disruptions in Nigeria’s telecom services arising from the conflict between MTN Nigeria and the towers company. The NCC’s meeting with the companies underscores a concerted effort to uphold the nation’s telecom service quality amidst industry disputes.
