The Government of Ghana is preparing to merge state-owned telecom operators AT Ghana and Telecel Ghana, aimed at strengthening financial stability and enhancing competitiveness in the sector.
Reasons for the Telecom Merger
Samuel Nartey George, Minister for Communications, Digital Economy and Innovations, stated that the merger aims to address the financial troubles of AT Ghana, which has accumulated $10 million in debts over eight months. He indicated that these funds are better directed towards public infrastructure funding.
Stages of the Merger and its Implications
The merger process will occur in three stages. The first stage involves the technical migration of infrastructure and customers. The second stage relates to human resource alignment, with assurances to existing employees about job security. The final stage will be the commercial restructuring to discuss essential issues such as shareholder involvement.
Future of Ghana's Telecom Sector
The merger of AT Ghana and Telecel is seen as a chance to compete with MTN Ghana, which currently holds 73.9% of the market with 30.2 million subscribers. The combination will give the new entity 10.44 million subscribers and a 26.1% market share, fostering further competition in the industry.
The merger of AT Ghana and Telecel Ghana marks a crucial step toward strengthening the Ghanaian telecom sector and creating a resilient competitive environment.
