In a move that underscores Vodacom’s push to ration the large cost burden associated with connectivity, the group has inked a deal with India’s Airtel to share telecoms infrastructure in some of its operating markets.
This partnership aims to improve cost-effectiveness and reach more people, especially in remote areas.
On Tuesday, the Vodafone subsidiary announced a strategic infrastructure sharing agreement with Airtel Africa in a number of markets including Mozambique, Tanzania and Democratic Republic of Congo (DRC).
This agreement is subject to regulatory approvals in the various countries.
“The agreement marks a transformative milestone in promoting digital inclusion and expanding access to reliable connectivity across Africa,” said the two telecoms groups in a joint statement.
Based in London, Airtel Africa provides telecommunications and mobile money services in 14 countries across Sub-Saharan Africa. The company is majority owned by Bharti Airtel, which has its headquarters in New Delhi, India.
Until recently, Vodacom was the most valuable telecoms operator on the JSE having lost this position to rival MTN. It operates SA’s largest mobile business and is currently valued at R285bn.
The new partnership will focus, first, on sharing fibre networks and tower infrastructure, to push the rollout of digital services in the agreed markets, increasing connectivity for customers while “reducing operators’ infrastructure costs and improving speed to market”.
Funding telecoms infrastructure is notoriously expensive. In recent years, Vodacom and MTN infamously each spent about R10bn a year expanding their mobile networks while the likes of Remgro continue to spend their own billions on fibre at Vumatel and Dark Fibre Africa.
This is just in SA. In the year to end-March 2025, Vodacom spent R20.3bn on capital expenditure across its operations, representing 13.3% of revenue. The majority of this spend is on its network.
As such, operators are finding ways to pool their resources and share the risk.
“By leveraging existing infrastructure, the collaboration aims to deliver improved connectivity, faster internet speeds and more reliable services. This will not only enhance customer experience but also assist with providing access to digital services for a broader population, particularly those in underserved areas, helping to bridge the digital divide in Africa,” Vodacom and Airtel said.
At home, Vodacom has been working on a R13bn deal to merge its fibre unit with that Remgro’s Maziv.
“Our partnership with Airtel Africa is a proactive step forward in creating a sustainable, inclusive and connected digital future for the continent,” said Vodacom group CEO Shameel Joosub.
“Through infrastructure sharing, we can provide cost-effective services to more people, more rapidly, ensuring that no-one is left behind in the digital age. As we fulfil our ambition to connect 260-million customers by 2030, the need for scalable and cost-efficient network solutions becomes increasingly significant
Sunil Taldar, Airtel Africa’s CEO said: “This partnership is aligned with our unwavering commitment to delighting our customers by always making our network available to them even in the remotest locations.
“Even as competitors, it has become a business imperative for us to collaborate in the provision of critical infrastructure required to build resilient network with strong capacity to support the emerging digital technologies as well as the growing need for data-enabled products and services,” Taldar said.
“This partnership allows for further opportunities for both operators to enhance network performance, extend coverage, and increase mobile, fixed and financial services leveraging a broader footprint on the continent.”
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