Sam George Reveals Government Plan to Merge AT Ghana and Telecel

In an effort to establish a more robust and sustainable telecom operator, the government plans to combine AT Ghana (previously AirtelTigo) and Telecel Ghana, according to the Ministry of Communication, Digital Technology, and Innovations.

The plans to combine telecom companies AT and Telecel have apparently been made public by Ghana’s Ministry for Communication, Digital Technology, and Innovations is in an effort to establish a viable rival to market leader MTN.

Sector Minister Samuel Nartey George gave employees assurances during a staff engagement at AT Ghana’s head office in Accra that the new arrangement would not result in the loss of any of the 300 permanent employees.

This procedure isn’t a reapplication. It is an extension of your agreements. Unless you personally decide to leave, all of you will be absorbed, as he emphasised.

Additionally, Mr. George promised that AT customers will be completely protected during the transition.

The ministry claims that AT Ghana’s unstable financial situation amidst all has made the operator to report more than $10 million in losses in just eight months this year and this has led to the decision to merge. The minister maintained that it was unsustainable to keep using public cash to support the business.

“Taxpayers pay for these losses. That money ought to be used to construct schools, water systems, and roads. “Public funds cannot be continuously allocated to unsustainable operations,” he stated.

He clarified that the combination would boost Ghana’s communications industry, cut expenses, and eliminate duplication.

Two networks operating independently on the same tower, both paying twice while struggling, is illogical. The wise and sustainable course of action is a merger,” Mr. George continued. 

Under a nationwide roaming agreement, over 3.2 million AT customers have already been transferred to Telecel’s network as part of an already-existing nationwide roaming agreement; the ministry said the transition was 98% seamless. 

Three stages will comprise the implementation of the integration process which are;

• Technical migration is nearly finished, and roaming is operational.
• Human resources alignment which is to guarantee that every employee is hired by the end of September. Realigning human resources will be the next step in order to keep all 300 of AT’s workers working for the newly combined company. 
• And lastly commercial restructuring and the purpose of this is to create the foundation for the combined operator. The structure of the combined firm would then undergo a commercial transformation, which should take 120 days.

Regarding funding, the minister revealed that over the following four years, the combined company will need $600 million.

In addition to urging Telecel and other partners to co-invest, he stated that the government will supply resources, including money from the sale of spectrum.

At the moment, the government owns 30% of Telecel Ghana and 100% of AT Ghana.

Notwithstanding Telecel’s acquisition of Vodafone Ghana, both businesses have had difficulties paying its partners and suppliers.