Merging for survival: inside AT and Telecel deal

Ghana plans to merge AT Ghana (formerly AirtelTigo) with Telecel Ghana according to the Minister for Communication.
What is happening?
On September 4, 2025, Communications Minister Samuel Nartey George confirmed the government’s intention to merge AT Ghana with Telecel Ghana. The move is part of a strategy to create a stronger, more sustainable competitor in Ghana’s telecom market, dominated by MTN — which holds about 73.8% market share with 29.8 million subscribers.
AT Ghana has incurred losses exceeding US$10 million in the first eight months of 2025. The government warned that continuing to subsidize these losses with taxpayer money—funds needed for roads, schools, and water—was unsustainable.
The merger is being rolled out in three phases:
1. Technical migration, already nearly complete, where over 3.2 million AT subscribers now roam on Telecel’s network (98% migration success so far).
2. Human resource alignment, aiming to absorb all 300 permanent AT employees into the merged entity by the end of September, with job continuity guaranteed unless an employee chooses otherwise.
3. Commercial restructuring, to be finalized within 120 days to establish the new operational framework.
Financing for the new entity is projected at around US$600 million over four years, sourced from government (via spectrum sales) and co-investments from Telecel and other partners.
Strategic Impacts: The Pros and Cons
Potential Upsides:
Better Efficiency and Cost Savings
Combining networks can eliminate redundant infrastructure like shared towers—saving costs and boosting operational efficiency.
Improved Competitive Standing
The merger could create a combined subscriber base of around 10.5 million, offering a stronger counterweight to MTN.
Preservation of Jobs
Assuring staff retention helps maintain workforce morale and continuity.
Public Fund Optimization
Reduces the financial drain on taxpayers, freeing up funds for critical national infrastructure.
Better Efficiency an Cost Savings
Combining networks can eliminate redundant infrastructure like shared towers, saving costs and boosting operational efficiency.
Potential Risks and Challenges:
Integration Complexity
In-house integration (technical systems, culture, policies) across massive subscriber bases can be technically and managerially challenging.
Brand & Customer Experience Risks
Existing dissatisfaction with Telecel’s coverage and service—highlighted in customer discussions—may carry over unless addressed proactively.
Need for Significant Investment
The plan hinges on securing substantial funding and committing to upgrade network infrastructure. Delays or funding shortfalls could stall transformational outcomes.
Market Consolidation Concerns
While merging may yield a stronger player, it also reduces the number of independent competitors, which could impact price competition in the long run.
In summary:
The merger could be a strategic move that makes sense given AT’s unsustainable financial performance and duplication in infrastructure. If effectively executed, it could yield a stronger, leaner operator positioned to challenge MTN and better serve consumers, provided the merged entity invests heavily in infrastructure, reliability, and customer support.
Conversely, the plan comes with notable risks. Without swift and visible improvements, especially in service quality, customer dissatisfaction might deepen. Plus, integration dynamics and funding execution will be critical.
Ultimately, this is a bold and potentially transformative step, but not without hurdles. The government’s assurances on staffing and structured rollout offer confidence, but execution in the upcoming months will determine whether it’s a success or simply another rebrand.




