The Minister for Communication, Digital Technology, and Innovations, Samuel Nartey George, has announced the government’s plan to merge AT (formerly AirtelTigo) with Telecel Ghana, guaranteeing job security for all 300 permanent AT employees and promising a seamless transition for millions of subscribers.
Speaking at a staff engagement session at AT’s headquarters in Accra, Mr. George, a Member of Parliament, sought to allay fears about the future of the struggling telecom operator.
“This is not a re-application process. It is a continuation of your contracts,” he told employees. “Every one of you will be absorbed, unless you personally choose to leave.”
The merger comes as AT grapples with mounting financial losses, reporting a staggering $10 million deficit in just the first eight months of 2025. These losses, funded by taxpayer money, have prompted the government to intervene, citing the need to redirect public funds toward critical infrastructure like roads, water systems, and schools.
“We cannot keep pouring public funds into unsustainable operations,” Mr. George said, emphasizing the urgency of the situation.
A Troubled Telecom Landscape
The Ghanaian telecom market has faced significant challenges in recent years, with fierce competition and rising operational costs squeezing smaller players like AT.
Once a joint venture between India’s Bharti Airtel and Ireland’s Tigo, AT has struggled to maintain profitability since its 2017 merger, which aimed to combine the strengths of both companies.
However, declining market share and high operational costs have left the company vulnerable, prompting government intervention to prevent its collapse.
Telecel Ghana, a relatively new entrant backed by the Telecel Group, has emerged as a viable partner for the merger. The company has been expanding its footprint in Africa, leveraging innovative technologies and strategic partnerships to compete with industry giants like MTN and Vodafone Ghana.
By merging AT with Telecel, the government aims to create a stronger, more competitive player in the market while eliminating inefficiencies such as duplicate infrastructure.
“It makes no sense for two networks to operate separately on the same tower, both paying twice while both struggle,” Mr. George said. “A merger is the smart and sustainable choice.”
A Phased Integration Plan
According to the minister, the integration of AT and Telecel is being executed in three distinct phases. The first phase, technical migration, is nearly complete, with a national roaming arrangement already allowing more than 3.2 million AT subscribers to access Telecel’s network.
Mr. George described the process as “98% smooth,” though some customers have reported minor disruptions in service.
The second phase, human resource alignment, is set to conclude by the end of September, ensuring that all 300 permanent AT employees are absorbed into the new entity.
The government has pledged to honor existing contracts.
The final phase, commercial restructuring, is expected to be finalized within 120 days. This phase will establish the operational framework for the merged company, including branding, pricing, and service offerings.
While details remain sparse, Mr. George hinted at a “reimagined” telecom operator that would prioritize affordability and innovation to compete with larger rivals.
Financial Challenges and Investment Needs
The merger’s success hinges on significant financial investment, with Mr. George estimating a need for $600 million over the next four years to sustain the new operator.
The government plans to inject resources, including proceeds from spectrum sales, while inviting Telecel and other private partners to co-invest. This public-private partnership model reflects Ghana’s broader strategy to bolster its digital economy while reducing the burden on public coffers.
Ghana’s telecom sector is a critical component of its digital transformation agenda, which aims to bridge the digital divide and position the country as a technology hub in West Africa.
With over 40 million mobile subscribers in a population of 33 million, the sector is both a driver of economic growth and a lifeline for millions who rely on mobile services for communication, banking, and access to information.
A Broader Context of Reform
The AT-Telecel merger is part of a broader wave of reforms in Ghana’s telecom industry, which has faced scrutiny for high costs and inconsistent service quality.
In recent years, the government has pushed for greater competition and innovation, including the introduction of 5G spectrum auctions and policies to promote digital inclusion in rural areas.
For now, Mr. George remains optimistic, framing the merger as a necessary step to secure the future of Ghana’s telecom industry. “This is about building a sustainable, competitive, and innovative telecom sector that serves all Ghanaians,” he said. “We are committed to getting this right.”
