Airtel Africa has announced plans to invest $1.1 billion to expand and upgrade its network across its operations on the continent, as the telecoms company looks to improve connectivity and customer experience.
The company’s Chief Executive Officer, Sunil Kumar Taldar, disclosed the plan while speaking on Arise News’ Global Business Report.
Taldar said Airtel Africa has significantly increased its capital spending, with investment rising from about $120 million to $390 million across its 14 markets. Nigeria, which remains the company’s largest market, has also recorded a significant increase in capital investment.
“We’ve significantly stepped up our capital investment from about $120 million to $390 million at an overall Africa level,” Taldar said.
He explained that the increased spending is aimed at expanding the company’s network, upgrading existing infrastructure and providing customers with a better experience.
According to Taldar, there is still considerable room for growth across Airtel Africa’s markets, as only about half of the population currently uses telecom services or smartphones.
He also pointed to the rapid growth in data usage, noting that consumption is increasing by more than 50 per cent as more people depend on internet services for work, education, healthcare and entertainment.
Despite the growth opportunities, Taldar identified unreliable electricity and the vandalism of telecom infrastructure as major challenges facing the industry.
He said most of Airtel Africa’s base stations still depend on diesel generators because of inconsistent electricity supply, making network operations more expensive.
Taldar noted that diesel powered operations can cost almost four times more than using electricity from the national grid. In Nigeria, he said, the price of diesel has also increased sharply, rising from about N900 to N1,800 per litre in recent months.
“Telecoms’ network and power are two sides of the same economic equation, and that’s one challenge that we need to solve,” he said.
With the planned investment, Airtel Africa is expected to continue expanding its network capacity while upgrading infrastructure across its markets to meet rising demand for voice and data services.
