As part of this evolution, the industry’s big players are moving beyond being providers of voice and data services to become full-fledged technology companies.

What Safaricom did with M-Pesa is one of the clearest examples of a telco transforming into a true ‘techco’. For this telco, the move was driven almost entirely by the success of its mobile money platform, M-Pesa.

M-Pesa started out as a simple tool for sending and receiving cash but has since grown into a fully fledged fintech ecosystem that is central to Kenya’s economy.

In fact, a 2024 GSMA report, suggests that the broader mobile-money ecosystem increased Kenya’s GDP by up to 8.6 % in 2023 compared to what it would have been without it.

For Safaricom, this evolution shows how a telco can become a technology company by solving real-world problems at scale but still with connectivity as the foundation of its offering.

Unfortunately, legacy systems can prevent telcos from evolving into tech-driven companies because they are rigid, expensive to maintain and can’t support the speed and flexibility needed to provide modern digital services.

For example, many operators still rely on outdated OSS/BSS stacks that make it difficult to get a single view of the customer or automate even basic processes.

Legacy OSS/BSS solutions were built for simple use cases – SMS, voice, data – and can’t really handle the variety of services that define the modern ‘techco’.

These monolithic systems are so complex that trying to introduce even a single change requires months of work, redesigns and change requests. Not only does this slow down operations, but it can also hinder flexibility and dramatically drive up costs. Also, remember that legacy systems aren’t API-enabled.

This means that they are very siloed, which limits communication between platforms and makes expanding into new product areas incredibly complex.

To unlock the ‘techco’ vision and expand the breadth of products and services under a single telco brand, operators need to find the right technology partners to help them innovate at the speed the market now demands.

This transition is more than just an architectural shift, it’s about providing the operational foundations needed for telcos to become ‘techcos’.

In the case of the OSS/BSS solutions mentioned above, this entails leveraging API-first architecture so that telcos can seamlessly partner with fintech providers, content platforms, IoT ecosystems, and enterprise technology vendors.

The right technology partner can help operators deliver convergent billing, which allows telcos to invoice diverse service types in a single customer bill, and modular, cloud-native design so that operators can scale specific components independently.

And where telcos want to venture into the mobile money space, the right technology partner will help them to access real-time transaction processing, which is essential in a market where sub-second response times can have a negative impact on usability.

Across the telecommunications industry, competition has intensified dramatically as more and more players enter the market and as regulators push prices down.

This trend reduces margins for operators and has also ended the era when telcos could rely on guaranteed, high-profit returns.

As a result, the industry has had to find creative ways to tap into new revenue streams.

At VAS-X, we have spent over two decades helping operators across Africa adapt and evolve in response to changes in the market.

For telcos looking to expand their offerings and become ‘techcos’, VAS-X can help to replace legacy systems that are stalling innovation and make it possible to launch and monetise a wide range of new digital services.

This isn’t just a brand refresh or a product extension. It’s a radical shift in how one of Nigeria’s most powerful companies will define its role in the digital future.

Why the Move from Telco to TechCo Matters

Historically, telecom companies have focused on delivering voice, SMS, and internet services. But MTN Nigeria sees the writing on the wall: the future lies in services, not just signals.

The TechCo model is about building and delivering digital platforms—cloud computing, data hosting, cybersecurity, IoT, AI, and edge computing—that empower businesses, startups, developers, and public institutions to innovate and scale.

The MTN Cloud platform is the first major public step in realizing this new identity.

Inside the MTN Cloud: A Local Alternative to Global Hyperscalers

At the heart of MTN’s transformation is its new Infrastructure-as-a-Service (IaaS) platform—MTN Cloud—accessible via cloud.mtn.com. Designed to mirror global platforms like AWS, Microsoft Azure, and Google Cloud, MTN Cloud offers:

• Self-service provisioning of virtual machines, storage, and network resources
• Instant scalability with modular infrastructure
• Local billing in naira, removing FX exposure
• Onshore data residency, aligned with the Nigeria Data Protection Act (NDPA)
• Pay-as-you-go pricing that’s SME-friendly
• Full API integration for developers and startups

What sets MTN Cloud apart isn’t just the technology—it’s the local context. It’s been built for Nigerian innovators, by Nigerian engineers, hosted in Nigeria, and priced in the local currency.

Dabengwa Data Centre: The Cloud’s Backbone

“The engine powering MTN Cloud is the 14-megawatt Dabengwa Data Centre, a multi-tier, AI-optimized facility capable of handling high-density compute tasks”, says Dr. Karl Toriola, CEO, MTN Nigeria.

Named after the late MTN Group CEO Sifiso Dabengwa, the centre is a tribute to both legacy and vision.

Key specs of the facility include:

• 1,500+ server racks
• AI-powered cooling systems for energy efficiency
• 24/7 intelligent monitoring dashboards
• Dual power feeds with over 11.5 MVA backup capacity
• FM2000 fire suppression and advanced physical security

This kind of infrastructure is usually associated with global tech giants—but now, it’s homegrown and locally accessible.

Meeting the Nation’s Urgent Needs

MTN Cloud arrives at a critical juncture in Nigeria’s digital journey. Businesses, financial institutions, and public agencies are under pressure to:

• Host sensitive data locally under NDPA
• Reduce reliance on unstable FX rates for cloud services
• Improve latency and service reliability for Nigerian customers
• Scale operations quickly in a fast-paced digital economy

MTN’s solution provides an elegant answer: a robust, scalable, and secure cloud environment that’s locally hosted, affordable, and fully compliant.

A Game-Changer for Startups and SMEs

For Nigeria’s booming tech ecosystem, MTN Cloud could be a game-changer.

Startups often struggle with the cost and complexity of global cloud platforms. With MTN Cloud, they can spin up infrastructure in minutes, build applications, and scale with zero hardware investment.

By offering self-orchestration capabilities, MTN is giving Nigerian developers the kind of agility and control that global platforms offer—without the FX volatility or latency.

“This isn’t just infrastructure; it’s a launchpad for the next generation of Nigerian startups,” said Lynda Saint-Nwafor, MTN’s Chief Enterprise Business Officer. “We’ve created something that’s on par with global standards, but grounded in the realities of our local market.”

Impact on Nigeria’s Economy and Digital Sovereignty

The economic impact of MTN Cloud and the Dabengwa Data Centre is profound:

• Retention of cloud spending within Nigeria
• Creation of hundreds of jobs in cloud engineering, support, and cybersecurity
• Empowerment of public sector institutions to digitize securely
• Enablement of AI, fintech, and health-tech sectors with high-performance computing power
• Stimulation of local content development and platform innovation

It also aligns with the Nigerian government’s National Digital Economy Policy and Strategy (NDEPS), which prioritizes data sovereignty, local hosting, and indigenous capacity building.

From Pipes to Platforms: The Bigger Picture

The MTN Cloud launch is part of the company’s broader Ambition 2025 strategy, which repositions it from a connectivity provider to a platform operator offering digital services, APIs, and ecosystems.

This mirrors global trends where telcos like Verizon, Singtel, and Orange are diversifying into cloud, cybersecurity, and enterprise tech.

MTN Nigeria’s move puts the country on the map not just as a consumer of technology, but as a creator and enabler of it.

Conclusion: Cloud as the New Currency of Innovation

In the coming years, every major innovation—whether in fintech, e-commerce, education, or AI—will be powered by cloud infrastructure. With MTN Cloud, Nigeria now has a powerful, locally-rooted platform to support this wave.

MTN’s transition from Telco to TechCo isn’t just a business decision—it’s a national milestone. It signals a future where digital services are built, hosted, priced, and protected within Nigeria, for Nigerians.

And in a world where digital independence is as vital as political sovereignty, MTN Cloud is Nigeria’s newest pillar of strength.

[Let’s tell your brand story. Contact Business@techeconomy.ng today]