Government to Merge AT Ghana and Telecel Ghana for Telecom Sustainability

 

The Ministry of Communication, Digital Technology, and Innovations has revealed plans to merge AirtelTigo Ghana with Telecel Ghana. The move aims to establish a more robust and financially viable telecom operator.

During a staff engagement at AT Ghana’s Accra headquarters, sector minister Samuel Nartey George assured the company’s 300 permanent employees that their jobs would be secure under the new arrangement.

He clarified that the process was not a reapplication but a continuation of existing contracts, emphasizing that all staff would be retained unless they chose to resign voluntarily.

Mr. George also pledged that AT Ghana’s customers would be fully protected throughout the transition.

The minister explained that the merger was prompted by AT Ghana’s unstable financial situation, having incurred losses exceeding $10 million within the first eight months of the year.

 The minister argued that continued public funding of the company was unsustainable, noting that such losses were being covered by taxpayers’ resources that could otherwise be used for infrastructure like roads, water systems, and schools.

He further stated that the merger would help reduce operational costs, eliminate redundancies, and strengthen the telecom sector. He pointed out that it was inefficient for two separate networks to operate on the same infrastructure while both struggled financially, and described the merger as a strategic and sustainable solution.

So far, over 3.2 million AT subscribers have been successfully transitioned to Telecel’s network under a national roaming agreement, which the ministry reported to be 98% smooth.

The integration will unfold in three phases:

  • Technical migration, which is nearly complete with roaming already active.
  • Human resource alignment, ensuring all staff are absorbed by the end of September.
  • Commercial restructuring to define the operational framework of the new entity.

Regarding financing, Mr. George disclosed that the merged company would require $600 million over the next four years. He said the government would contribute resources, including proceeds from spectrum sales, and encouraged Telecel and other partners to co-invest.

Currently, the government owns 100% of AT Ghana and holds a 30% stake in Telecel Ghana. Despite Telecel’s acquisition of Vodafone Ghana, both companies continue to face significant debts to vendors and partners.

Jasmine Adjei
Author: Jasmine Adjei

Development journalist

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