Anyone thinking that the government’s decision to merge AirtelTigo (AT) and Telecel will cause any significant or major shift in the country’s telecommunication market should reconsider, as an industry analyst has revealed that the deal is unlikely to create any significant difference in Ghana’s telecom market.
This is the verdict of a telecoms industry player, Maximus Ametorgoh. He argues that while the move may address ownership and investment concerns, it will not cure the deeper market structure and the imbalances.
Why the Merger?
According to the government, the merger has become necessary to save AT from the persistent decline. Communications, Digital Technology, and Innovations Minister Samuel Nartey George has revealed that AirtelTigo recorded more than $10 million in losses in just eight months this year.
“These losses are funded by taxpayers. That is money that should be building roads, water systems, and schools. We cannot keep pouring public funds into unsustainable operations,” he said, justifying the merger.
Sam George also guaranteed job security for AT’s 300 permanent staff, emphasizing that there will not be any re-application process as their contracts will continue.
MTN’s Unshakable Lead
Despite being under an SMP (Significant Market Power) embargo that restricts its pricing flexibility and other operations, MTN continues to dominate the telecom market.
Ametorgoh noted that this dominance is not accidental but the product of years of consistent brand building, innovation, and nationwide infrastructure expansion.
He therefore insisted that the merger will not affect the dominance of MTN in anyway.
“Even if you double AT and Telecel or put them together, I don’t see them competing with MTN at the current rate,” he said.
The industry player further noted that both AT and Telecel have their own structural and operational challenges, which make them unable to compete with MTN. From weaker infrastructure rollouts to less aggressive innovation, neither brand has built the kind of customer loyalty MTN enjoys.
“I don’t think it’s going to solve the problem or cure the problem that the minister wants, you know, to cure. So, for AT and Telecel, they all have their own peculiar issues why they are not market leaders, and of course, we all know that MTN is the one leading the market, even though they have a whole embargo on them as an SMP, a significant market power with a lot of restrictions, and they are still leading the market,” he noted.
A Government-Driven Merger
Maximus further argues that he does not see any unique strength that both AT and Telecel bring to the table for this merger.
The industry player is convinced that the decision appears more about government investment than true market competitiveness. To him, it is because of the government’s stake in the two telecoms that’s why they are merging the two.
“They [MTN] introduced a lot of innovative products, but AT, what power are they taking to Telecel, and what power does Telecel have to boost AT’s coverage?” he quizzed.
He, therefore, concluded that “For me, I think because of government investment in two telecoms, that’s why they are merging the two.”
The Bottomline
Maximum Ametorgoh’s analysis of the merger reveals that creating a viable competitor to MTN and causing a significant market shift requires more than combining weaker brands.
It will take strategic innovation, bold infrastructure investments, and unique service offerings that resonate with consumers. Until then, the market will continue to tilt in favour of MTN.
