Despite the Ministry of Communications’ firm denial of reports of a possible merger between AirtelTigo and Telecel, the debate refuses to die quietly.
While the Minister for Communications, Samuel Nartey George, insists no such deal is on the table at the moment, two leading industry voices are sharply divided on whether such a move would make sense.
Telecom industry player, Maximus Ametorgoh, has been very blunt. For him, a merger between the two weak companies will not cause a significant change. He argues that even if the two operators join forces, the impact on Ghana’s telecom market will be negligible.
Maximus further insists that merging the two will not be the solution to the problems they are facing, such as the huge debt overhang of AT.
“I don’t think it’s going to solve the problem or cure the problem that the minister wants to cure,” he said. According to him, AirtelTigo and Telecel each carry “peculiar issues” that have kept them lagging far behind MTN, which continues to dominate the market despite heavy regulatory restrictions as a Significant Market Power (SMP).
“AT, what power are they taking to Telecel, and what power does Telecel have to boost AT’s coverage?” Ametorgoh asked, adding that the move appears driven more by the government’s investment interest in the two companies than by any real potential to tilt the market.
But Appiah Kusi Adomako, who wears a triple hat of economist, lawyer, and consumer protection advocate, sees it differently. The West African Regional Director of CUTS International is convinced that a merger-like restructuring could be the lifeline needed to strengthen the industry’s competitiveness.
“From an economic standpoint, the merger makes sense as a way to enhance efficiency,” he argued. By pooling resources, the combined entity could cut operating costs, free up funds for service upgrades, and extend coverage to underserved rural areas.
While Maximus maintains the merger won’t tickle the dominance of MTN, Appiah Kusi Adomako believes such consolidation could pressure MTN by introducing dynamic pricing, fresh offerings, and greater innovation, ultimately benefiting consumers and creating a more contestable market.
“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 noted.
He continued, “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.”
The possible merger of the two seems to be generating both optimism and skepticism from experts.
It is the contest of whether a merger would do little more than consolidate weaknesses, or whether resource-sharing could unlock financial stability and spur innovation.
For now, the government says KPMG has been appointed to look into the matters of AT and suggest a possible course of action to salvage the company.
Irrespective of the government’s denial, one thing is clear that Ghana’s telecom sector remains at a crossroads, caught between entrenched dominance and the pursuit of a more balanced, inclusive, and competitive future.
