The Government of Ghana is on the brink of merging state-owned telecom operators AT Ghana and Telecel Ghana. The move is part of the government’s drive to redefine its financial strength and see a more competitive telecom sector.

The country’s Minister for Communications, Digital Economy and Innovations, Samuel Nartey George, explained that the merger is necessary to solve AT Ghana’s ongoing financial woes. As the telecom operator’s troubles mount, it has accounted for $10 million in debts within the last eight months. 

He mentioned that such funds are better directed towards funding public infrastructure, such as roads, schools, healthcare centres, and electricity. However, the Minister clarified that the merger is not intended to abandon the telecom company, but rather to reinforce a renewed operation. 

According to the Ghanaian government, financing AT Ghana with taxes is no longer sustainable. The strategic solution to maintain and raise its performance is a merger. Formerly known as AirtelTigo, the government took full control of the assets and customers in November 2021. It was created from the 2017 merger of Airtel and Tigo’s operations in Ghana. 

While the government owns 100% of AT Ghana, it only holds 30% in Telecel Ghana, with the UK’s Vodafone owning the rest. However, both have faced challenges in ensuring their operational excellence owing to MTN Ghana’s dominance. 

The merger is termed a rescue mission for both telecom companies that have faced notable challenges, such as debts and financial sustainability. It’s also seen as a revolutionary push that will take on MTN Ghana and usurp its leadership position. 

As of H1 2025, MTN Ghana holds a customer base of 30.2 million subscribers, a 73.9% share.  Telecel follows with 18.3%, or 7.29 million subscribers, while AT Ghana trails with 3.15 million subscribers, a 7.9% market share. 

By merging Telecel and AT, the two operators will command a combined subscriber base of 10.44 million, giving them a 26.1% share of the market. While this isn’t enough to challenge MTN, it will solidify their position as the second-largest telecom player in the country. 

Also Read: MTN to resume Telkom SA acquisition talks by end of 2025.

Ghana’s plans for the merger and what it means 

In dire need of innovative resurgence, the rescue mission is important for both telecoms companies. The merger is expected to streamline cost operations and eradicate duplication of infrastructural financing.

The project is expected to phase out in three processes. First is the technical migration of infrastructure and customers, which is almost completed. The government revealed that about 3.2 million AT subscribers have been successfully migrated to Telecel’s network. It noted that the roaming process has been smooth with no record of any technical glitch.

Second is the human resources alignment. In this phase, the Ghanaian government has assured all 300 permanent employees that their employment is secured under the new entity. It added that they won’t need to make a new application as their existing agreement will be reactivated. 

According to the Minister, Samuel George, all employees are expected to be absorbed by the end of September. 

The last phase is the commercial restructuring, where the framework for the entity will be finalised. Important discussions, such as shareholders, the government and Vodafone’s stake, board and directors, and funding plans, are expected to be the core of this conversation.

The Ghanaian government has also pledged a $600 million investment into the project over the next 4 years. The government expects the merger to be a pivotal step to reviving the needed competition in the country’s telecom industry. 

Aside from the government’s plan funds, additional financial reinforcement is expected to come from proceeds such as spectrum sales. Also, more investments will come from shareholders, other partners and Telecel. In addition, both parties have assured that subscribers’ interests will be made a priority during the merger period.

The development will bring a chance for both telecoms to challenge MTN’s dominance and give the industry a sense of competition. It will also give subscribers the choice of quality alternatives that spur operators to make more infrastructural upgrades.