The Minister of Communications and Digital Technology Innovations, Sam George, has announced plans by the John Mahama-led government to formalise a merger between two of the country’s biggest telecommunication brands, AT Ghana and Telecel.
The move, according to the Minister, forms part of efforts to restructure the operations of both companies to create a stronger and more sustainable operator in the telecom industry.
Speaking during a staff engagement at the offices of AT Ghana, Sam George assured the company’s over 300 workers that their jobs would remain secure under the merger, which the government is driving.
“This is not a re-application process. It is a continuation of your contracts. Everyone of you will be absorbed, unless you personally choose to leave,” he stressed.
The Minister further assured customers of AT Ghana that their commercial interests would be safeguarded throughout the merger process.
The decision, he explained, was largely influenced by AT Ghana’s precarious financial position, having recorded losses of more than $10 million within the first eight months of this year. He insisted that continuous support for the company with public funds was unsustainable.
“The recurring losses on the books of AT are borne by Ghanaian taxpayers, and such funds can be used to provide big-ticket social amenities like schools, roads, hospitals, markets, and the like. The state cannot keep sinking scarce resources into a venture that is not yielding positive outcomes. Hence, the need for this bold decision to push for a merger that will cut our losses while keeping the company viable for its staff and numerous customers,” he explained.
The Minister said the merger would help reduce costs, eliminate duplication, and strengthen competition in Ghana’s telecom market.
Already, more than 3.2 million AT subscribers have been moved onto Telecel’s network under a national roaming agreement, which the ministry described as “98% smooth.”
Mr. George revealed that the merger process would follow a three-pronged structure:
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Technical migration – almost complete, with roaming already in place.
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Human resource alignment – ensuring all staff are absorbed before the end of September.
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Commercial restructuring – to establish the operational framework for the merged entity.
According to ministry estimates, the merger will cost the state about $600 million over a four-year period.
AT Ghana is currently wholly owned by the Government of Ghana, which also holds a 30% stake in Telecel Ghana.
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Story by Sika Togoh|univers.ug.edu.gh
