Ghana Challenges MTN by Planning to Merge AT Ghana and Telecel

The Government of Ghana is preparing to shake up the telecom industry by planning to merge two of its own telecom companies, AT Ghana and Telecel. This big move is seen as a way for Ghana to challenge MTN, the biggest telecom company in the country, and create a stronger player that can better compete.

Ghana challenges MTN by planning to merge AT Ghana and Telecel because both companies have been struggling. AT Ghana, in particular, has faced serious money problems, racking up $10 million in debt in just eight months. The government says it can’t keep using taxpayer money to cover these losses. Instead, they believe merging AT Ghana and Telecel will build a more stable telecom company that can stand on its own financially.

The country’s Minister for Communications, Digital Economy and Innovations, Samuel Nartey George, says the merger isn’t about giving up on AT Ghana but about fixing it and making it stronger. He points out that money spent bailing out the company could be better used to improve Ghana’s roads, schools, hospitals, and electricity. So, Ghana challenges MTN by planning this merger to make their telecom sector healthier and more competitive.

A little background: AT Ghana used to be called AirtelTigo, which was itself a product of a 2017 merger between Airtel and Tigo in Ghana. The government took full control of AT Ghana in November 2021. Meanwhile, the government owns only 30% of Telecel Ghana, with the British company Vodafone owning the rest. Both AT Ghana and Telecel have found it hard to keep up with MTN, which dominates the market.

Right now, MTN is by far the biggest. It serves about 30.2 million customers, which is nearly 74% of the market. Telecel comes next with about 7.29 million subscribers or 18.3%, and AT Ghana has 3.15 million subscribers, making up just under 8%. Ghana challenges MTN by planning to merge AT Ghana and Telecel because together, they would have around 10.44 million subscribers, or about 26% of the market. That’s a much stronger position, making them the second-largest telecom company in Ghana and a serious competitor to MTN.

The merger will happen in three main steps. First, the technical work of moving customers and infrastructure from AT Ghana to Telecel’s network is almost done. So far, about 3.2 million AT Ghana customers have been switched over smoothly, with no major problems.

Second, the government is making sure all the staff from AT Ghana keep their jobs. There are about 300 permanent employees, and the government promises they don’t have to apply again for their work. Their contracts will simply be renewed under the new company. The goal is to have everyone settled by the end of September.

The last step is the business side, figuring out who owns what, how the new company will be run, and how it will be funded. Talks will include the government, Vodafone, and other shareholders. The government has said it will invest $600 million over the next four years to support the merger and grow the new company. They also expect more money from selling telecom licenses and investments from partners.

This plan to merge AT Ghana and Telecel is more than just a fix — it’s Ghana’s way to challenge MTN by creating a telecom company that can stand toe-to-toe with the giant. This will bring more competition, which is good news for customers because it means better service and more choices.

In summary, Ghana challenges MTN by planning to merge AT Ghana and Telecel with the hope of building a stronger telecom sector. This merger will help save two struggling companies, give customers better options, and push the whole industry to improve. It’s an important step toward shaking up the market and making telecom better for everyone in Ghana.

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