Business

Ghana Government to Merge AT Ghana and Telecel for Stronger Telecom Sector

The Ministry of Communications, Digital Technology, and Innovations has unveiled plans to merge AT Ghana (formerly AirtelTigo) with Telecel Ghana to create a more robust and sustainable telecommunications operator, addressing financial losses and inefficiencies in the sector.

The announcement was made by Sector Minister Samuel Nartey George during a staff engagement at AT Ghana’s head office in Accra on September 3, 2025.

Addressing concerns about job security, Minister George assured all 300 permanent AT Ghana employees that their positions are safe. “This is not a re-application process.

It is a continuation of your contracts. Every one of you will be absorbed, unless you personally choose to leave,” he emphasized.

He also guaranteed that AT Ghana customers would be fully protected during the transition, with over 3.2 million subscribers already migrated to Telecel’s network under a national roaming agreement described as “98% smooth.”

The merger is driven by AT Ghana’s dire financial situation, with the company recording over $10 million in losses within the first eight months of 2025, funded by taxpayer money. “These losses are funded by taxpayers.

That is money that should be building roads, water systems, and schools. We cannot keep pouring public funds into unsustainable operations,” George stated, highlighting the need for a sustainable solution.

The minister explained that the merger aims to reduce costs, eliminate operational redundancies, and strengthen Ghana’s telecom market. “It makes no sense for two networks to operate separately on the same tower, both paying twice while both struggle. A merger is the smart and sustainable choice,” he added.

The integration will unfold in three phases:

Technical Migration: Nearly complete, with national roaming already operational.

Human Resource Alignment: Ensuring all staff are absorbed by the end of September 2025.

Commercial Restructuring: To establish the framework for the merged entity within 120 days.

Funding the new operator will require an estimated $600 million over the next four years, with the government committing resources from spectrum sales and calling on Telecel and other partners to co-invest.

Currently, the government owns 100% of AT Ghana and 30% of Telecel Ghana, both of which have faced challenges with debts to vendors despite Telecel’s 2023 acquisition of a 70% stake in Vodafone Ghana.

The merger aligns with broader efforts to bolster Ghana’s telecom sector, which faces competition from dominant player MTN Ghana, holding over 67% market share. Telecel has already expanded its network with 300 new 4G sites in 2024, aiming for 2,500 by 2026.

However, concerns linger about the financial viability of the merged entity, given AT Ghana’s liabilities and Telecel’s reluctance to absorb them without incentives, as noted in earlier industry discussions.

Public reactions on X show mixed sentiments, with some praising the cost-saving potential and others questioning whether the merger will truly enhance competition or merely consolidate struggling entities.

The success of the merger will depend on effective execution and securing the necessary investment to create a formidable competitor in Ghana’s telecom landscape.

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