Although the Ministry of Communications, Samuel Nartey George, may have swiftly shot down speculation of a possible merger or acquisition between AirtelTigo and Telecel, an industry watcher believes that a merger arrangement, if it ever happened, would be economically prudent.
Samuel Nartey George, in an interaction with the media, has stressed that “the process is not a merger or acquisition but a response to a force majeure situation.”
The minister urged subscribers, suppliers, creditors, and other stakeholders to remain calm, revealing that accounting and auditing firm KPMG has been appointed to assess AT to provide clarity on outstanding debts, services, and the future of AT Ghana.
However, despite shooting down the merger claims, it is emerging that economic reasoning paints a different picture of what could be, should the two players join forces.
According to the West Africa Regional Director of CUTS International, Appiah Kusi Adomako, a lawyer and a competition economist, a merger-like restructuring would not only make sense but could also reshape Ghana’s telecom landscape.
In a brief copied to The High Street Journal, the consumer protection advocate argued that, considering the current status of Telecel and AT in Ghana’s telecoms landscape, pooling their meagre resources is the best option.
Given that the combined shares of the two companies is even less than 30% of MTN’s dominance, merging the two, Appiah Kusi Adomako sees to be a route to achieve economies of scale, cutting down operating costs, and freeing up resources for innovation, upgrades, and better pricing.
“From an economic standpoint, the merger-like restructuring makes sense as a way to enhance efficiency. When two smaller firms combine, they can pool resources to achieve economies of scale, reducing operating costs and freeing up funds for better pricing or service upgrades,” the economist and lawyer argued.
He further states that such a union will improve the financial stability of the new entity, adding that it could help to drive coverage to underserved rural areas, pushing the boundaries of digital inclusion for communities that have long been left behind.
More importantly, it could breathe life into competition, presenting a stronger challenger to industry giant MTN.
“The new entity would gain financial stability, enabling investments in technology, innovation, and customer support. A wider network could extend coverage to underserved rural areas, promoting inclusion for those previously excluded. Importantly, this arrangement could create a stronger competitor to MTN, making the market more contestable,” he said.
He added, “With greater bargaining power over suppliers and less duplication in infrastructure, this proposed arrangement might introduce dynamic pricing and new offerings, pressuring all players to perform better.”
Consumers, the West African Regional Director of CUTS International, says will potentially enjoy benefits from a possible merger. There could be lower prices, wider coverage, and better services.
For the market, the possible ripple effect could be a more contestable space where innovation, not dominance, drives the game.
