{"id":92764,"date":"2025-09-05T09:10:23","date_gmt":"2025-09-05T09:10:23","guid":{"rendered":"https:\/\/sotnews.agency\/?p=92764"},"modified":"2025-09-05T09:10:23","modified_gmt":"2025-09-05T09:10:23","slug":"at-ghana-and-telecel-merger-what-it-means-for-the-telecom-market","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=92764","title":{"rendered":"AT Ghana and Telecel merger: What it means for the telecom market"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>2 Minute, 58 Second <\/div>\n\n <\/div>
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Government has announced plans to merge AT Ghana, formerly AirtelTigo, with Telecel Ghana in what it describes as a necessary intervention to stem rising losses and create a stronger competitor in the telecom sector. The decision, according to the Ministry of Communications, Digital Technology, and Innovations, comes on the back of AT\u2019s dire financial condition, which continues to weigh heavily on the state.<\/p>\n

At a staff engagement held at AT Ghana\u2019s Head Office in Accra, the Minister, Samuel Nartey George, assured employees that their jobs are secure. He emphasised that the merger is not a re-application process but rather a continuation of existing contracts, stressing that no staff member will be laid off as part of the transition. Customers, too, are expected to have their interests fully protected as the process unfolds.<\/p>\n

AT\u2019s financial performance is in bad shape. In just the first eight months of 2025, the company lost over $10 million. The 2024 State Ownership Report revealed a staggering GH\u00a2785 million loss for that year alone.<\/p>\n

\"AT<\/figure>\n

\u00a0Over the past five years, cumulative losses have risen to GH\u00a22.7 billion, while debts of GH\u00a23.6 billion now outweigh equity valued at GH\u00a22.8 billion.<\/p>\n

\"AT<\/figure>\n
\"AT<\/figure>\n

In simple terms, if AT were sold today, the proceeds would not even cover its outstanding liabilities. For the government, the continued injection of taxpayers\u2019 money into such a distressed entity is unsustainable.<\/p>\n

Beyond AT\u2019s financial woes, the merger also seeks to reshape Ghana\u2019s highly concentrated telecom market. According to data from the National Communications Authority (NCA), MTN currently dominates with 73.9 per cent of market share, representing 29.5 million subscribers. Telecel follows with 18.3 per cent, or 7.29 million subscribers, while AT trails with just 7.9 per cent, or 3.15 million subscribers.<\/p>\n

\"AT<\/figure>\n

By merging Telecel and AT, the two operators will command a combined subscriber base of 10.44 million, giving them a 26.1 percent share of the market. This would solidify their position as the second-largest player in Ghana\u2019s telecom industry, although still far behind MTN, which will maintain a significant lead with nearly 19.5 million more subscribers.<\/p>\n

\"AT<\/figure>\n

The integration will be rolled out in three phases. The first, technical migration, is nearly complete, with more than 3.2 million AT customers already moved onto Telecel\u2019s infrastructure under a national roaming arrangement described as \u201c98 per cent smooth.\u201d <\/p>\n

The second phase will focus on aligning human resources, ensuring that all 300 AT staff are absorbed before the end of September. The final phase will involve commercial restructuring to establish the business framework of the merged entity.<\/p>\n

Financing the new operator will require significant investment. The government has projected a need for $600 million over the next four years, with contributions expected from spectrum sales, Telecel itself, and other strategic partners.<\/p>\n

For consumers, the merger could bring some benefits. With AT subscribers moving onto Telecel\u2019s infrastructure, network quality and internet speeds are expected to improve. A stronger Telecel may also introduce more competitive data bundles to challenge MTN\u2019s dominance. <\/p>\n

However, analysts caution that given MTN\u2019s overwhelming control of the market, major price reductions or a full-scale price war are unlikely in the short term.<\/p>\n

Ultimately, the government\u2019s move is designed to ease the financial burden on taxpayers, protect jobs, and give Ghana\u2019s telecom industry a more competitive edge. Whether the merger will truly rebalance the market remains to be seen, but for now, MTN\u2019s dominance continues to loom large.<\/p>\n<\/div>\n

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