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Ghana Moves to Challenge MTN with Planned AT Ghana–Telecel Merger

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Ghana Moves to Challenge MTN with Planned AT Ghana–Telecel Merger

The Government of Ghana is set to restructure the nation’s telecom sector with plans to merge AT Ghana and Telecel, a strategic move aimed at strengthening competition against MTN, the dominant market leader.

The initiative comes amid mounting financial difficulties at AT Ghana, which has accumulated over $10 million in debt within eight months. Authorities have made it clear that continued reliance on taxpayer funds to keep the company afloat is unsustainable. By merging AT Ghana with Telecel, the government hopes to create a financially viable operator capable of standing on its own and competing more effectively.

Communications, Digital Economy, and Innovations Minister, Samuel Nartey George, emphasized that the plan is not about abandoning AT Ghana but about reinforcing its position. He noted that resources currently spent on bailouts could be redirected to national development priorities such as infrastructure, healthcare, education, and energy.

AT Ghana, formerly AirtelTigo, emerged from the 2017 merger of Airtel and Tigo, before being fully acquired by the government in 2021. Telecel, meanwhile, is 30% state-owned, with Vodafone holding the majority stake. Despite these efforts, both operators have struggled to keep pace with MTN, which commands nearly 74% of Ghana’s mobile market with over 30.2 million subscribers. In comparison, Telecel serves about 7.29 million customers (18.3%), while AT Ghana has 3.15 million subscribers (8%).

The merger would consolidate their bases into a combined 10.44 million subscribers, representing approximately 26% of the market—positioning the new entity as a formidable second-largest operator and a direct challenger to MTN.

Implementation of the merger is progressing in three phases. The first, a technical integration, has already seen 3.2 million AT Ghana customers successfully migrated to Telecel’s infrastructure without major disruptions. The second phase prioritizes workforce retention, with the government assuring that all 300 AT Ghana employees will transition seamlessly into the new company without reapplying for their positions. The final stage will address governance, ownership structures, and financing.

To support the merger, the government has pledged $600 million in investment over the next four years, with additional funding expected through telecom licensing and private partnerships.

This restructuring is not just a rescue plan for struggling operators—it is a calculated bid to enhance competition, expand consumer choice, and elevate service quality in Ghana’s telecom industry. By merging AT Ghana and Telecel, the government aims to create a stronger market challenger capable of driving innovation and reducing MTN’s overwhelming dominance.

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