MTN Fibre Expansion Plans to Link Eight Million Households

MTN Nigeria has affirmed its commitment to escalating its investment in fibre optic technology, setting its sights on connecting eight million households across the country within the next three years.

The disclosure was made by Tobe Okigbo, the Chief Corporate Services and Sustainability Officer, during an interactive session with alumni of the MTN Media Innovation Programme (MIP) in Lagos.

Okigbo highlighted that the telecommunications provider is channelling massive capital into residential fibre infrastructure, despite facing hurdles such as securing regulatory permits, managing the logistics of physical deployment, and navigating the extensive timelines required to recoup investments.

Data indicates that MTN Nigeria has already committed upwards of ₦1 trillion to capital expenditure, a substantial portion of which has been channeled into expanding its national fibre footprint and its Fibre-to-the-Home (FTTH) product line, known as FibreX.

He pointed out that fixed fibre broadband operates on a different model to mobile internet, as subscribers pay for specific connection speeds rather than the volume of data consumed.

This infrastructure push is part of a broader strategy by MTN to migrate consumers gradually from a reliance on mobile data over to fixed-line home broadband connections.

Okigbo noted that the global telecommunications sector is transitioning away from basic voice and data offerings, propelled by rapid advancements in artificial intelligence, 5G technology, smart devices, and interconnected households.

He cautioned that network operators who fail to pivot run the risk of becoming simple pipeline providers, whilst independent tech corporations extract the real commercial value from digital platforms.

"The future of the sector is no longer determined solely by geographic coverage. To remain relevant and market-competitive, we must construct digital services and platforms on top of our existing network infrastructure," he stated.

Addressing the issue of recent tariff adjustments, Okigbo argued that the increases were essential to counter rising overheads, inflation, and threats to the overall financial viability of the industry.

He pointed to skyrocketing diesel prices and other escalating overheads as the primary drivers behind the rising costs of maintaining telecom services in Nigeria.

In his view, service pricing must align with market conditions and inflationary pressures, while giving consumers the freedom to switch over to alternative networks if they seek better value.

Regarding the standard of service, Okigbo mentioned that MTN has previously issued compensation to customers affected by network outages and remains locked in talks with regulatory authorities over system failure accountability.

He explained that ongoing discussions aim to clarify the distinction between technical failures caused directly by network operators and disruptions triggered by external variables like vandalism, civil engineering projects, and infrastructure damage.

While MTN supports reimbursing users for genuine provider failures, Okigbo emphasised the need for clear regulatory frameworks to define these operational liabilities.

Furthermore, he remarked that laying fibre cables remains a far more intricate task than expanding cellular coverage, requiring extensive physical digging, local authority clearances, and meticulous engineering plans.

Turning to mobile financial services, Okigbo revealed that the MTN Group has acquired a 60 per cent controlling stake in MoMo across its operating territories to sharpen its edge and improve user experiences.

He concluded that the next chapter of the telecommunications landscape will be heavily dictated by integrated connectivity, smart homes, internet-enabled vehicles, and the widespread adoption of the Internet of Things (IoT).