FG warns MTN NG and IHS Towers against telecom disruption amidst collocation dispute

The Federal Government of Nigeria has issued a stern warning to telecommunications giants MTN Nigeria (MTN NG) and IHS Towers, cautioning against potential disruptions to telecom services amid their ongoing collocation dispute.

Reports from TechnologyTimes indicate that the Nigerian Communications Commission (NCC) is set to convene a meeting today with both companies, signalling the government’s intervention in a protracted rift affecting the telecom sector.

Concerned with the lingering collocation rift between MTN Nigeria, the country’s largest mobile phone company, and IHS Towers, the largest independent owners and operators of shared telecommunications infrastructure, the government has taken a decisive stance.

Sources familiar with the situation reveal that the telecom regulator has not only threatened severe sanctions in case of service quality degradation but also issued a gag order restraining the disputing parties from making inflammatory public statements.

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

What you should know about the MTN NG/IHS dispute

This intervention by the NCC comes amidst a standoff between the telecom giants, revolving around the lease of telecom towers. MTN Nigeria recently finalised 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, stating that the lease to ATC could potentially disrupt network services in Nigeria. Attempting to prevent such disruptions, IHS Towers offered improved commercial terms to MTN, aiming to bridge the gap between offers.

“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,” remarked Sam Darwish, Chairman and CEO of IHS Towers.

However, MTN Nigeria emphasised the finality of their agreement with ATC, explaining that there was a rigorous procurement process that led to the deal.

“Our partnership with ATC marks a strategic move aimed at meeting our customers’ growing demands while ensuring cost efficiency and sustainability,” stated Tobechukwu Okigbo, Chief Corporate Services and Sustainability Officer at MTN Nigeria. “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 stressing 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.