No going back on tower lease agreement with ATC—MTN Nigeria

Nigeria’s telecom giant, MTN Nigeria, has debunked reports that its former tower contractor, IHS, was set to offer it a better deal to regain the contract of the telecom firm’s 2,500 towers, therefore reneging on the deal with ATC.

MTN in a statement stated that ATC won the contract after a highly competitive bidding process, noting that it has not received any offer from IHS and has no plan to change its decision on the contract.

It would be recalled that MTN in September announced that the lease for the 2,500 sites, which was due to expire in 2024 and 2025, had been awarded to ATC after a very fair and transparent procurement process.

While describing the report as false, MTN Nigeria’s Chief Corporate Services and Sustainability Officer Tobechukwu Okigbo, in the statement, said the agreement with ATC over the 2,500 sites is final, having gone through a rigorous process involving our highest governance approvals.

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

“MTN will continue to engage constructively with IHS on further opportunities that arise, including the renewal of the next vintages of towers that come up for renewals in 2025. Other opportunities for value optimization will arise and we will undertake a similar exacting process. We are hopeful that participating parties including IHS will present a compelling proposition,” Okigbo said.

Okigbo also dismissed allegations that contracting the sites to ATC would lead to network disruptions and have a negative environmental impact.

According to him, such allegations are factually incorrect and misleading because tower transfers between two infrastructure companies do not necessarily lead to network disruption. He added that MTN is confident that ATC’s plans will ensure a smooth transition between towers.

“Through our partnership with ATC, we are setting the stage for a new era of connectivity in Nigeria, one that not only meets the growing demands of our customers but also aligns with our focus on expense efficiencies, commitment to sustainability, and environmental responsibility,” Okigbo said.

According to him, MTN expects ATC to adhere strictly to NCC guidelines and NESREA regulations on deploying telecom sites.

“We are deeply committed to achieving net-zero emissions and part of the differentiated value ATC provides is a commitment to operating green sites, ensuring significant reduction in carbon emissions. Contrary to the allegations of harmful environmental impact, the partnership with ATC will reduce greenhouse gases,” he added.