Airtel Africa plans to invest $1.1 billion in expanding and upgrading its telecommunications infrastructure across 14 African markets, including Nigeria, as surging data consumption puts greater pressure on network capacity.
The investment will support network expansion and upgrades aimed at improving service quality and positioning the telecommunications company for further growth as more Africans adopt smartphones and digital services.
Nigeria, Airtel Africa’s largest market, is expected to play a significant role in the investment drive, with the company’s capital spending in the country nearly doubling in recent years, Brandspur Brand News reports.
Airtel Africa Group Chief Executive Officer Sunil Kumar Taldar said the company had substantially increased capital investment across its operations, reflecting the need to strengthen network infrastructure and improve customers’ experience.
According to Taldar, overall capital investment across the company’s African operations has risen from about $120 million to $390 million, while spending in Nigeria has increased significantly.
The company sees considerable room for further growth across the continent. Only about half of the population in Airtel Africa’s operating markets currently uses telecommunications services or smartphones, leaving millions of potential customers yet to fully participate in the digital economy.
That opportunity is emerging alongside a sharp increase in internet usage. Data consumption across Airtel Africa’s markets is growing by more than 50 per cent as consumers increasingly depend on connectivity for work, education, healthcare and entertainment.
For customers, expanding network capacity could become increasingly important as heavier data usage places additional demands on existing telecommunications infrastructure.
However, Airtel Africa identified electricity supply and infrastructure vandalism as major obstacles to operating and expanding telecommunications networks.
Many base stations continue to depend on diesel generators because of unreliable grid electricity, significantly increasing the cost of keeping mobile networks operational.
Taldar said powering telecommunications infrastructure with diesel can cost almost four times as much as using electricity supplied through the national grid.
The challenge is particularly significant in Nigeria, where Airtel said diesel prices have risen from around N900 to approximately N1,800 per litre in recent months.
Higher energy costs can put additional pressure on operators already investing heavily in network equipment, maintenance and capacity upgrades to meet rising demand.
Airtel Africa’s planned $1.1 billion investment therefore comes as telecommunications companies balance the need for stronger and wider networks against the substantial cost of powering and protecting infrastructure.
With mobile internet becoming increasingly central to everyday economic and social activity across Africa, the company’s expansion programme is expected to focus on building the capacity required to accommodate continued growth in data consumption while improving the quality of services available to customers.
