Gov’t To Merge AT (AirtelTigo) Ghana With Telecel

Ghana, Sept 4 (MUZICGH) - Ghana will merge its state-owned mobile operator, AT Ghana, with Telecel Ghana to create a stronger market competitor and halt millions of dollars in losses, the country's Communication, Digital Technology & Innovation minister said, assuring that all employee contracts would be honoured.

The move is a direct response to the precarious financial state of AT Ghana, formerly AirtelTigo, which has accumulated over $10 million in losses in the first eight months of the year. Minister Samuel Nartey George said the government could no longer justify using public funds to subsidize the struggling company.

"These losses are funded by taxpayers. That is money that should be building roads, water systems, and schools," George stated during a staff meeting at AT's head office in Accra. "We cannot keep pouring public funds into unsustainable operations."

Despite the merger, the minister gave a firm guarantee on job security for AT's 300 permanent employees, ruling out redundancies as a result of the consolidation.

"This is not a re-application process. It is a continuation of your contracts," George told the staff. "Every one of you will be absorbed, unless you personally choose to leave."

The merger is expected to create significant operational efficiencies by eliminating duplication. More than 3.2 million AT subscribers have already been migrated to Telecel’s network through a national roaming agreement that officials described as "98% smooth."

"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,” the minister added.

The new, consolidated entity will require an estimated $600 million in investment over the next four years to ensure its long-term viability and competitiveness. According to the ministry, funding is expected to come from a combination of government resources, including proceeds from spectrum sales, and co-investments from Telecel and other partners.

The integration will proceed in three phases: a nearly complete technical migration, human resource alignment by the end of September, and a full commercial restructuring to establish the framework for the merged operator.

The merger marks the latest attempt to restructure Ghana's competitive telecom sector. AT Ghana, which the government took full ownership of in 2021, has struggled to compete with dominant players. The government of Ghana currently holds a 100% stake in AT Ghana and 30% in Telecel Ghana.