Telcos urged to implement infrastructure sharing for cost reduction

Telecom operators across Africa have been urged to embrace infrastructure sharing as a strategy to reduce rising costs and improve connectivity across the continent.

The Vice President of Marketing and Partnerships at Tizeti—an internet service provider, Temitope Osunrinde, shared this call in a recent LinkedIn post.

He mentioned that the escalating costs of telecom services, compounded by economic challenges and currency fluctuations, have placed significant pressure on operators.

These developments have led to continuous calls by the Nigerian telcos for a tariff increase, the first adjustment in 11 years, to alleviate the cost burden.

However, Osunrinde proposed that instead of each operator purchasing equipment individually, they should pool resources by consolidating demand.

This collaborative approach, he argued, would significantly reduce costs, stimulate local manufacturing, and foster partnerships with pan-African companies like Dangote and Coca-Cola, which could help expand service availability.

“With aggregated demand, we can reduce the cost of purchasing equipment, lower the financial burden on telecom operators, and make essential services more affordable,” he said.

Osunrinde, who is also the convener of Hyperscalers Convergence Africa, stated that the demand for mobile connectivity in Africa is growing rapidly, but infrastructure costs remain one of the primary obstacles to expanding coverage in underserved areas.

He pointed out that the cost of rolling out services in Africa has surged by at least 50 percent compared to the previous year, driven by global economic shifts and foreign exchange fluctuations.

“We’re facing a perfect storm,” Osunrinde warned. “The high costs, coupled with the lack of regulatory clarity, are pushing us further away from the digital future we aspire to.”

As Africa’s population grows at an annual rate of 2.4 percent, the pressure to bridge the digital divide has never been greater.

According to him, the situation remains dire: only one in three Africans has access to mobile connectivity, leaving millions without crucial services like education, healthcare, and financial support.

Osunrinde pointed to the stark disparity in access to digital services worldwide: in North and South America, the average age for getting fully online is 12.6 years; in Asia, it’s eight years; but in Africa, it’s a staggering 23 years.