MTN Nigeria Communications has made a strategic move by selecting ATC Nigeria as its preferred tower services provider for around 2,500 network sites. This decision comes as the lease agreements for these sites, currently serviced by IHS Nigeria, are set to expire in 2024 and 2025. MTN Nigeria’s proactive approach ensures continued connectivity and robust network services as these contracts near their expiration dates.
MTN Nigeria’s Tower Contracts on the Horizon
MTN Nigeria recently disclosed that the lease agreements for roughly 2,500 network sites, which are currently under the care of IHS Nigeria, will soon reach their expiration dates in 2024 and 2025. In adherence to MTN Nigeria’s procurement policy, which prioritizes transparency and competitive bidding processes, the company initiated a tender process for these tower contracts.
ATC Nigeria Emerges as the Preferred Provider
After a meticulous evaluation of the bids submitted for tower services across the affected sites, ATC Nigeria Wireless Infrastructure Solutions Limited (ATC) emerged as the preferred tower company. ATC’s superior bid submission and comprehensive solution have positioned it as the ideal choice to take on this responsibility. This strategic decision not only ensures seamless network services but also diversifies MTN Nigeria’s site portfolio.
ATC Nigeria Takes the Helm
Starting in 2025, ATC Nigeria will assume responsibility for providing tower services to the affected sites. This move aligns with MTN Nigeria’s forward-looking approach to renegotiating tower agreements, with a focus on terms that offer stability and resilience amid the evolving business landscape.
IHS Towers Responds to the Transition
IHS Towers, currently managing multiple contracts with MTN for tower usage in Nigeria, acknowledged MTN Nigeria’s decision in a formal exchange filing. The transition will impact IHS’s approximately 2,000 towers set to expire on December 31, 2024, and roughly 500 towers due to expire in 2025. The remaining tower contracts are slated to expire between 2026 and 2031.
During the second quarter of 2023, the approximately 2,500 towers with contracts expiring by December 2025 contributed approximately USD 45 million in revenue for MTN. The dynamic changes in tower management signify MTN Nigeria’s commitment to optimizing its network infrastructure and enhancing service quality for its subscribers.
