Ghanaian Government Plans to Combine AT Ghana and Telecel in a Unification Move
The Government of Ghana is advancing plans to merge AirtelTigo (AT) with Telecel Ghana, with the human resource alignment process expected to be completed by the end of September. This announcement was made by the Communication Minister of Ghana, Samuel Nartey George.
In a clarifying statement, Minister George emphasised that this is not a re-application process for AT staff, but a continuation of their contracts. He assured all 300 permanent AT employees that their jobs are secure. The minister's statement aims to alleviate concerns over potential job losses due to the merger.
The merger aims to consolidate operations, cut duplication, and build a stronger competitor in Ghana's telecom sector. The government plans to fund the merged operator with $600 million over four years. Funds will come from spectrum sales and co-investment from Telecel and partners.
The integration will roll out in three phases. The technical migration process is nearly complete, with roaming already operational. The migration of over 3.2 million AT subscribers onto Telecel's network via national roaming is currently 98% smooth.
The partner company working with AirtelTigo in the planned merger is MTN Ghana. The commercial restructuring of the new company will take place within 120 days.
Hon. Samuel Nartey George also highlighted the financial implications of the merger, stating that the losses incurred by AirtelTigo, amounting to over $10 million in just eight months, could have been used for infrastructure development like roads, water systems, and schools. The merger, therefore, seeks to make the new company more competitive and profitable.
The minister's statement comes as the government faces criticism over the financial burden of supporting AirtelTigo. With the merger, the government aims to address these concerns and foster a more sustainable and competitive telecom sector in Ghana.
