IHS says Nigerians may face call and internet network disruptions over MTN tower transfer

IHS Holding has expressed concerns that the transfer of the 2,500 towers to American Tower Corporation may lead to network disruptions in Nigeria. This statement comes as IHS attempts to negotiate better commercial terms with MTN Nigeria for the retention of the towers.

In September, MTN disclosed that the lease for 2,500 sites with IHS, set to expire in 2024 and 2025, was awarded to ATC Nigeria following a bidding process. The telecom company emphasized that this deal would enhance tower portfolio diversity and contribute to lowering network expenses.

According to the Chief Executive Officer of MTN Nigeria, Karl Toriola, “Efficient tower contracts are key in driving cost-effective, deep broadband penetration and leading technology across our operations, and in our quest of achieving differentiated value, we will from time to time review the contracts we have with our partners to ensure they optimally meet our site requirements. But beyond efficiency, we will also focus on cost optimization, green energy utilization, and sustainability.”

Speaking on this, Sam Darwish, the Chairman and CEO of IHS Towers, informed Reuters on Thursday that despite the towers constituting a minor portion of the company’s overall tenancies, IHS is prepared to align with ATC’s conditions.

He stated, “IHS has offered improved commercial terms on the 2,500 towers to close the gap (between the offers) as our main aim is to prevent network disruption in Nigeria.”

In response, MTN emphasized that the arrangement with ATC had been concluded, affirming its commitment to ongoing discussions with IHS regarding potential opportunities, including the renewal of its remaining sites.

The statement read, ”Our preference is always for bilateral renewal, subject to competitive pricing and terms. In this instance the ATC proposal was superior,”

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IHS tower transfer and the future of telecoms in Nigeria

The recent transfer of 2,500 towers from IHS Holding to American Tower Corporation has sparked discussions about the future landscape of telecommunications in Nigeria. As the industry navigates this shift, several factors influencing the trajectory of development, partnerships, and technological advancements come into play,

The prospect of increased technological innovations in the telecom sector looms large post-tower transfer. With American Tower Corporation now in the picture, there is a heightened anticipation of advancements, particularly in the realm of 5G technology. The involvement of ATC could potentially drive the implementation of cutting-edge technologies that promise faster and more reliable connectivity.

The transfer of towers opens the door to new partnerships within the telecom industry. Collaborations between telecom companies and infrastructure providers may become more prevalent as the sector seeks to drive efficiency and enhance service quality. The evolving landscape may witness strategic alliances that leverage the strengths of different entities to create a more robust and interconnected telecom ecosystem.

One critical aspect of the future telecom landscape in Nigeria involves assessing the impact of the tower transfer on investments in network infrastructure. Investors, both local and international, are likely to scrutinize the industry for opportunities and stability. The tower transfer may signal a phase of increased investments aimed at fortifying the country’s telecom backbone.

The dynamics of market competition within the telecommunications sector are expected to undergo a shift post-tower transfer. The redistribution of tower assets may influence the market share and strategic positioning of major telecom players. The industry is poised for a reconfiguration that could lead to heightened competition, innovation, and improved services for consumers.

Government regulations and policies play a pivotal role in shaping the future of telecommunications. Regulatory bodies may reassess and adapt their frameworks in response to the tower transfer. The regulatory environment will significantly influence how telecom companies operate, innovate, and collaborate in the post-transfer landscape.

At the forefront of industry considerations is the impact on consumers. Concerns about service quality and network stability are central as stakeholders work towards enhancing the overall customer experience. The industry’s ability to address these concerns will play a crucial role in shaping consumer perceptions and loyalty.

The aftermath of the tower transfer may usher in industry-wide initiatives and developments. Stakeholders across the telecom spectrum may collaborate on initiatives aimed at fostering growth and sustainability. The industry’s collective efforts could result in new standards, practices, and technologies that elevate the entire telecommunications ecosystem.

A notable aspect of the future telecom landscape involves the potential for increased global connectivity and integration. The transfer of towers may position Nigeria’s telecom market as an attractive prospect for international collaborations and investments. This integration could lead to a more interconnected global telecom network.

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